Corporation Tax Act 2010 section 752

Application of Chapter

Section 752 sets out when the income stream transfer rules apply, targeting situations where a company separates the right to receive income from the underlying asset that generates it.

• The chapter applies where a company within the charge to corporation tax (the transferor) transfers to another person (the transferee) a right to income that would otherwise be taxable on the transferor, and the transfer of the income right is not simply a consequence of transferring the underlying asset itself.
• Relevant receipts cover any income that, but for the transfer, would be charged to corporation tax as income of the transferor or would be brought into account in calculating the transferor's corporation tax profits.
• The chapter still applies where the income right is transferred as a consequence of transferring all rights under an agreement for annual payments, and a transfer of an asset under a sale and repurchase arrangement is not treated as a transfer of the asset for these purposes.
• Exclusions from the chapter exist where the amount is otherwise taxed (section 754) and where the transfer is made by way of security (section 755), with special provision for transfers of partnership shares in section 756.