Corporation Tax Act 2009 section 848

Tax-neutral transfers

Section 848 provides an exception to the market value rule for transfers of intangible fixed assets between related parties, where the transfer qualifies as tax-neutral under another provision of Part 8.

• The market value rule in section 845 (which requires related-party transfers of intangible fixed assets to be treated as taking place at market value) does not apply where the transfer is tax-neutral.
• A transfer is tax-neutral where another provision within Part 8 of the Corporation Tax Act 2009 specifically grants it that status.
• Key examples of tax-neutral transfers include intra-group transfers of intangible fixed assets under section 775.
• Transfers of a business or trade under sections 818 to 826, such as company reconstructions or amalgamations, also qualify as tax-neutral and are therefore exempt from the market value rule.