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HMRC internal manual

Corporate Finance Manual

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HM Revenue & Customs
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Other tax rules on corporate debt: transfers of income streams: non-corporate transferors

Non-corporate transferors

The legislation dealing with non-corporate transferors is in ITA07/PT13/CH5A. The provisions match those for companies and differ only to the extent necessary to cater for the different structure of income tax.

Apart from the question of when the income is treated as arising, the preceding pages apply to non-corporate as well as corporate transferors. The differences are covered below and in the section in the Savings and Investment Manual dealing with non-corporate transferors who are not financial traders. They reflect the fact that whereas a company will always produce accounts, a person within the charge to income tax is likely to do so only in relation to the taxation of profits from a trade or property business. So there are different rules for non-corporate transferors to determine the period in which income is treated as arising.

ITA07/S809AZB(3) sets out the default timing rule, which is that the income is to be treated as arising in the chargeable period of the transferor in which the transfer takes place. This differs from the corporation tax provision where the default rule is that the income is to be allocated in accordance with GAAP.

See CFM77150 for the rules for cases where the relevant receipts would have been taxed as trading income or income from a property business.

There is more about non-corporate transferors other than financial traders in the Savings and Investment Manual.