Corporation Tax Act 2010 section 45H

Section 45F: transfers of trade to obtain relief

Section 45H is an anti-avoidance rule that prevents terminal loss relief under section 45F where a trade is transferred to a party outside the charge to corporation tax as part of a scheme to exploit the relief.

• Section 45F terminal loss relief is denied where a company ceases trading and activities transfer to persons outside the corporation tax charge
• The denial applies only where the cessation is part of a scheme or arrangement with a main purpose of securing section 45F relief
• Both conditions must be met: the transfer to a non-corporation-tax-liable party, and the avoidance purpose behind the cessation
• This rule mirrors the equivalent anti-avoidance provision in section 41, which applies to the older form of terminal loss relief