Section 284 | Transfer of rights if transferee does not carry on UK property business

(1)This section applies if—

(a)a company (“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.