Corporation Tax Act 2010 section 357EE

Transfer of a trade between group members

Section 357EE deals with the transfer of any unallocated patent box set-off amount when a trade is transferred from one group company to another.

• When a company with a set-off amount for a trade ceases to carry on that trade, and another company in the same group takes it over, the set-off amount transfers to the new company.
• The transferred set-off amount applies to the accounting period in which the transferee begins carrying on the trade.
• If the transferee already has its own set-off amount, the transferor's set-off amount is added to it.
• Both companies must be members of the same group at the time of the transfer for this provision to apply.