Corporation Tax Act 2009 section 827

Claims to postpone charge on transfer

Section 827 sets out when a UK resident company can claim to postpone a corporation tax charge on intangible fixed assets when it transfers a trade carried on overseas to a non-UK resident company.

• A UK resident company transferring an overseas trade (or part of one) to a non-UK resident company may claim to postpone the tax charge on intangible fixed assets included in the transfer
• The transfer must include all assets used in the trade (or all except cash), and the consideration must include shares amounting to at least 25% of the transferee's ordinary share capital (including any shares already held)
• The transfer must be a genuine commercial transaction, and the claim cannot be made if a separate claim has already been made under section 116(6) of TIOPA 2010 for European cross-border transfer relief
• Where a valid claim is made and all conditions are met, the postponement relief provisions in sections 828 to 830 apply to the relevant intangible fixed assets