SCHEDULES
SCHEDULE 10Taxation provisions relating to transfer schemes
Part 2Other transfers under section 1(2) schemes
Capital allowances: transfer of part of a trade
I113
1
Where a person (“the predecessor”) is carrying on a trade and, in consequence of a scheme made under section 1(2)—
a
the predecessor ceases to carry on a trade, and
b
a person who is not a national authority (“the successor”) begins to carry on activities of that trade as part of a trade carried on by the successor,
then that part of the trade carried on by the successor shall be treated for the purposes of paragraph 12 as a separate trade.
2
Where a person (“the predecessor”) is carrying on a trade and, in consequence of a scheme made under section 1(2)—
a
the predecessor ceases to carry on a part of a trade, and
b
a person who is not a national authority begins to carry on activities of that part of that trade,
then the predecessor shall be treated for the purposes of paragraph 12 and sub-paragraph (1) of this paragraph as having carried on that part of its trade as a separate trade.
3
Where activities fall to be treated for the purposes of this paragraph as a separate trade, such apportionments of receipts, expenses, assets and liabilities shall be made for the purposes of the 2001 Act as may be just and reasonable.