Section 357YM | Assignment of rights to person not chargeable to corporation tax
From legislation.gov.uk
(1)Subsection (4) applies if—
(a)a chargeable company (“the transferor”) transfers to a person who either—F1
(i)is not a company, orF1
(ii)is a non-qualifying company,F1
a right in respect of a claim, or possible claim, for restitution,
(b)the transfer is made on or after 21 October 2015, and
(c)conditions A and B are met.
(2)Condition A is that the main purpose, or one of the main purposes, of the transfer is to secure a tax advantage for any person in relation to the application of the charge to tax on restitution interest under this Part.
(3)Condition B is that as a result of that transfer (or that transfer together with further transfers of the rights) restitution interest arises to a person who either—F2
(a)is not a company, orF2
(b)is a non-qualifying company.F2
(4)Any restitution interest which arises as mentioned in Condition B is treated for corporation tax purposes as restitution interest arising to the transferor.
(5)For the purposes of this section a company is a “chargeable company” if it meets the first and second conditions.F3
The first condition is that the company is UK resident or carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.
The second condition is that the company is not a charitable company and would not be exempt from corporation tax on restitution interest (were such interest to arise to it).
(5A)For the purposes of this section a company is a “non-qualifying company” if—F3
(a)it is non-UK resident, orF3
(b)it is a charitable company, or would be exempt from corporation tax on restitution interest (were such interest to arise to it).F3
(6)In this section “tax advantage” has the meaning given by section 357YI.