Section 355 Transfer of rights if transferee does not carry on UK property businessC1

(1)

This section applies if—

(a)

a person (“the transferor”) permanently ceases to carry on a UK property business,

(b)

the transferor transfers to another person (“the transferee”) for value the right to receive sums arising from the carrying on of any business (“the transferred business”) comprised in the transferor's UK property business, and

(c)

the transferee does not subsequently carry on the transferred business.

(2)

The transferor is treated as receiving a post-cessation receipt.

(3)

The amount of the receipt is—

(a)

the amount or value of the consideration for the transfer, if the transfer is at arm's length, or

(b)

the value of the rights transferred as between parties at arm's length, if the transfer is not at arm's length.

(4)

Any sums mentioned in subsection (1)(b) which are received after the cessation of the property business are not post-cessation receipts.

Annotations

Modifications

C1: Ss. 353-368 modified (7.4.2005) by Finance Act 2005 (c. 7), s. 51(2)

Notes on Chapter 10

Modifications

C1: Pt. 3 Ch. 10 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 2(4)(a)