Corporation Tax Act 2010 section 959

Arrangements for transfer of relief

Section 959 defines the types of arrangements that fall within the anti-avoidance rules concerning the transfer of partnership loss relief, by reference to four specific effects involving payments related to a partner company's share of a firm's profits or losses.

• Arrangements are caught if they result in a payment being made to the partner company, or a person connected with it, in respect of the partner company's share of the firm's losses
• Arrangements are also caught if another partner in the firm, or a person connected with that other partner, receives a payment relating to the value of the partner company's share of the firm's profits or losses
• It does not matter whether the payment relates to the whole or only part of the partner company's share, and "payment" includes any benefit in money or money's worth received directly or indirectly
• Payments made to the partner company by a company in the same group for the purposes of group relief are excluded and do not trigger these anti-avoidance rules