Section 738 | Receipt of assets of relevant company (circumstance E)

(1)This section applies in relation to a company (“the section 733 company”) if subsections (2) to (4) and (7) apply.

(2)The section 733 company receives consideration in connection with—

(a)the direct or indirect transfer of assets of a relevant company (see section 739) to another such company, or

(b)any transaction in securities in which two or more relevant companies are concerned.

(3)The consideration is or represents the value of assets which—

(a)are available for distribution by way of dividend by a relevant company,

(b)would have been so available apart from anything done by the relevant company, or

(c)are trading stock of a relevant company.

(4)The consideration consists of any share capital or any security issued by a relevant company.

(5)So far as subsection (4) relates to share capital other than redeemable share capital, it applies only so far as the share capital is repaid (in a winding up or otherwise).

(6)The reference in subsection (5) to the repayment of share capital includes a reference to any distribution made in respect of any shares in a winding up or dissolution of the relevant company.

(7)The section 733 company does not pay or bear corporation tax on income in respect of the consideration (apart from this Part).

(8)In this section—

(a)references to the receipt of consideration include references to the receipt of any money or money's worth,

(b)“security” includes securities not creating or evidencing a charge on assets, and

(c)“share” includes stock and any other interest of a member in a company.