Corporation Tax Act 2009 section 257

Transfer involving person within the charge to income tax

Section 257 ensures that when an interest in premises is transferred between a corporation tax payer and an income tax payer, the entitlement to a deduction for sea wall expenditure continues properly for the corporation tax payer, while directing the income tax payer to the corresponding income tax rules.

• Applies where a transfer of an interest in premises occurs between a company subject to corporation tax and a person subject to income tax, in either direction
• The transfer rules in section 255 are used only to determine whether the corporation tax payer is entitled to a sea wall expenditure deduction and, if so, how much
• Any references to deduction entitlements or amounts relating to the income tax payer are disregarded under this Act
• The income tax payer's entitlement to a deduction for sea wall expenditure is instead governed by sections 316 to 318 of ITTOIA 2005