Section 318 | Transfer involving company within the charge to corporation tax

(1)This section explains how section 316 works if—

(a)the transferor is a person within the charge to income tax and the transferee is a company within the charge to corporation tax, or

(b)the transferor is a company within the charge to corporation tax and the transferee is a person within the charge to income tax.

(2)Section 316 applies only for the purpose of determining—

(a)whether the person within the charge to income tax is entitled to a deduction (or part of a deduction) under section 315, and

(b)the amount of any such deduction.

(3)Accordingly, any reference to—

(a)whether a person is entitled to a deduction (or part of a deduction) under section 315, or

(b)the amount of any such deduction,

is ignored if the person is a company within the charge to corporation tax.

(4)For any entitlement of a company within the charge to corporation tax to a deduction for any of the expenditure, see sections 255 to 257 of CTA 2009 (corresponding corporation tax provision).