Corporation Tax Act 2009 section 930

Questions about apportionments affecting two or more persons

Section 930 establishes the procedure for resolving disputes about how a sale price should be split between different types of property when the outcome affects the tax position of more than one taxpayer.

• When intellectual property or patent rights are sold together with other property and the sale price must be apportioned, disputes about the split may arise between the parties involved.
• If the way a sum is apportioned materially affects the tax liability of two or more persons, the question must be resolved using the formal procedure set out in section 563(2) to (6) of the Capital Allowances Act 2001.
• A question is considered to materially affect two or more taxpayers if, at the time it needs to be decided, the outcome would be relevant to the tax liability of two or more persons for any period.
• This ensures that where buyer and seller have competing interests in how a lump sum is allocated, there is an independent and consistent mechanism for reaching a binding determination.