Corporation Tax Act 2009 section 782

Certain transferees of businesses etc not treated as leaving group

Section 782 provides relief from the degrouping charge under section 780 where a company leaves a group as a consequence of a European cross-border transfer of business.

• Where an intangible fixed asset is transferred as part of a qualifying European cross-border business transfer and the transferee company leaves its group as a result, the normal degrouping rules under section 780 do not apply.
• The transferee company is not treated as having left its original group (Group 1) for the purposes of the deemed realisation and reacquisition at market value that section 780 would otherwise trigger.
• If the transferee joins a new group (Group 2) as a result of the transfer, Group 1 and Group 2 are treated as the same group, ensuring continuity and preventing a degrouping charge.
• The terms "transferee" and "relevant asset" take their meaning from section 780, which deals with the deemed realisation and reacquisition of intangible fixed assets at market value when a company leaves a group.