Corporation Tax Act 2010 section 356H

Introduction to sections 356HA and 356HB

Section 356H sets out the circumstances in which the rules in sections 356HA and 356HB apply when a company disposes of equity in a licensed area while holding unactivated onshore allowance.

• The rules apply where a company (the transferor) disposes of all or part of its equity share in a licensed area that is or contains a site
• Immediately before the disposal, the transferor must hold unactivated onshore allowance for the site in question
• Any company receiving a share of the equity from the transferor is referred to as a transferee
• Both conditions — the disposal of equity and the holding of unactivated allowance — must be met for sections 356HA and 356HB to come into effect