Corporation Tax Act 2009 section 830

Exclusion from section 829 of group transfers

Section 830 ensures that transfers of assets or securities between companies in the same group do not trigger the reinstatement charge that would otherwise arise under section 829 when assets received on a transfer of a trade are subsequently disposed of.

• Intra-group transfers of securities (disposals within TCGA 1992 section 171) and intra-group transfers of intangible assets are disregarded for the purposes of the section 829 reinstatement charge
• If securities pass between group members and are then sold outside the group, the eventual disposal is treated as made by the original transferor (the company that originally transferred the trade), preserving the charge on that company
• If an intangible asset passes between group members and is then sold outside the group, the eventual disposal is treated as made by the original transferee (the company that acquired the trade), preserving the charge on that company
• The exclusion applies only where all intermediate transfers in the chain were themselves intra-group transfers that qualified to be ignored under this section