Section 879L | Meaning of relevant business and third party acquisition ^F1

(1)This section applies for the purposes of section 879K(3).

(2)“Relevant business” means—

(a)in a case where the relevant asset is within paragraph (e) of subsection (2) of section 879A, the business or (as the case may be) the part of the business mentioned in the paragraph of that subsection within which the licensed asset falls, and

(b)in any other case, the business or (as the case may be) the part of the business mentioned in the paragraph of that subsection within which the relevant asset falls.

(3)The transferor acquires something in a “third party acquisition” if—

(a)the transferor acquires it from a company (“C”) and, at the time of that acquisition—

(i)if the transferor is an individual, the transferor is not a related party in relation to C, or

(ii)if the transferor is a firm, no individual who is a member of the transferor is a related party in relation to C, or

(b)the transferor acquires it from a person (“P”) who is not a company and, at the time of that acquisition—

(i)if the transferor is an individual, P is not connected with the transferor, or

(ii)if the transferor is a firm, no individual who is a member of the transferor is connected with P.

(4)But an acquisition is not a “third party acquisition” if—

(a)its main purpose, or one of its main purposes, is for any person to obtain a tax advantage (within the meaning of section 1139 of CTA 2010), or

(b)it occurs during the period beginning with 8 July 2015 and ending with 31 March 2019.

(5)In this section “connected” has the same meaning as in Chapter 12 (see section 842).