Corporation Tax Act 2009 section 680

Disapplication of Chapter where transparent entities involved

Section 680 explains when the rules in Chapter 9 (concerning transfers of business involving derivative contracts) are switched off because a "transparent entity" is involved as the transferor.

• Chapter 9 does not apply where the company transferring the business is a transparent entity
• A transparent entity is a company resident in a member State that does not have an ordinary share capital
• The restriction only affects the transferor — it is the nature of the transferring company that determines whether the chapter is disapplied
• If the transferor does have ordinary share capital, the normal Chapter 9 rules continue to apply to the transfer of business