Corporation Tax Act 2010 section 738

Receipt of assets of relevant company (circumstance E)

Section 738 describes the fifth circumstance (circumstance E) under which the transactions in securities rules may apply to a company, specifically where it receives consideration connected with the transfer of assets of a relevant company or transactions in securities involving relevant companies.

• The section applies where a company (the "section 733 company") receives consideration in connection with a direct or indirect transfer of assets between relevant companies, or a transaction in securities involving two or more relevant companies.
• The consideration received must represent the value of assets available for distribution as dividends by a relevant company, assets that would have been so available but for actions taken by that company, or trading stock of a relevant company.
• The consideration must take the form of share capital or securities issued by a relevant company, and in the case of non-redeemable share capital, the provision only bites when that share capital is actually repaid, including distributions made on a winding up or dissolution.
• The section only applies where the section 733 company does not otherwise pay or bear corporation tax on income in respect of the consideration received.