Section 752 | Application of Chapter

(1)This Chapter applies if—

(a)a company within the charge to corporation tax (“the transferor”) makes a transfer to another person (“the transferee”) of a right to relevant receipts (see subsection (2)), and

(b)(subject to subsection (3)) the transfer of the right is not a consequence of the transfer to the transferee of an asset from which the right to relevant receipts arises.

(2)“Relevant receipts” means any income—

(a)which (but for the transfer) would be charged to corporation tax as income of the transferor, or

(b)which (but for the transfer) would be brought into account in calculating profits of the transferor for the purposes of corporation tax.

(3)Despite subsection (1)(b), this Chapter applies if the transfer of the right is a consequence of the transfer to the transferee of all rights under an agreement for annual payments; and for the purposes of subsection (1)(b) the transfer of an asset under a sale and repurchase agreement is not to be regarded as a transfer of the asset.

(4)Section 753 makes provision as to the consequences of this Chapter applying.

(5)For exclusions from this Chapter, see—

(a)section 754 (amount otherwise taxed), and

(b)section 755 (transfer by way of security).

(6)Section 756 makes special provision about transfers of partnership shares.

(7)Section 757 contains supplementary provisions.