Section 273A | Transfer of United Kingdom branch or agency. ^F1

(1)Subject to subsections (3) and (4) below, subsection (2) below applies for the purposes of corporation tax on chargeable gains where—^F1

(a)there is a scheme for the transfer by a company (“company A")—^F1

(i)which is not resident in the United Kingdom, but^F1

(ii)which carries on a trade in the United Kingdom through a branch or agency,^F1

of the whole or part of the trade to a company resident in the United Kingdom (“company B"),

(b)company A disposes of an asset to company B in accordance with the scheme at a time when the two companies are members of the same group, and^F1

(c)a claim in relation to the asset is made by the two companies within two years after the end of the accounting period of company B during which the disposal is made.^F1

(2)Where this subsection applies—^F1

(a)company A and company B shall be treated as if the asset were acquired by company B for a consideration of such amount as would secure that neither a gain nor a loss would accrue to company A on the disposal, and^F1

(b)section 127(3) of the Finance Act 1989 shall not apply to the asset by reason of the transfer.^F1

(3)Subsection (2) above does not apply where—^F1

(a)company B, though resident in the United Kingdom,—^F1

(i)is regarded for the purposes of any double taxation arrangements having effect by virtue of section 788 of the Taxes Act 1988 as resident in a territory outside the United Kingdom, and^F1

(ii)by virtue of the arrangements would not be liable in the United Kingdom to tax on a gain arising on a disposal of the asset occurring immediately after its acquisition, or^F1

(b)company B is—^F1

(i)a dual resident investing company, within the meaning of section 404 of the Taxes Act 1988, or^F1

(ii)an investment trust, within the meaning of section 842 of that Act.^F1

(4)Subsection (2) above shall not apply unless any gain accruing to company A—^F1

(a)on the disposal of the asset in accordance with the scheme, or^F1

(b)where that disposal occurs after the transfer has taken place, on a disposal of the asset immediately before the transfer,^F1

would be a chargeable gain and would, by virtue of section 11(2)(b) of the Taxes Act 1988, form part of its profits for corporation tax purposes.

(5)In this section “company" and “group" have the meanings which would be given by section 272 above if subsections (1)(a) and (2) of that section were omitted.^F1