Corporation Tax Act 2010 section 940B

Meaning of "transfer of a trade" and related expressions

Section 940B defines what constitutes a "transfer of a trade" and establishes the key terminology used throughout the chapter when one company ceases a trade and another company takes it on.

• A transfer of a trade occurs when one company stops carrying on a trade and another company begins carrying on that same trade.
• The company that stops the trade is called "the predecessor" and the company that starts it is called "the successor".
• The trade that moves from the predecessor to the successor is referred to as "the transferred trade".
• References to a "trade" throughout this chapter also include an office, and "carrying on a trade" includes holding an office, unless the context requires otherwise.