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HMRC internal manual

Corporate Intangibles Research and Development Manual

HM Revenue & Customs
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Intangible assets: company reorganisations: transfer of foreign permanent establishment from UK to a non resident company: further deferral

As mentioned in CIRD42050, the occasions of charge dealt with there are further deferred in certain circumstances.

Shares or Loan stock transferred under TCGA92/S171

If the transferor company disposes of the shares or loan stock in the transferee company within the terms of Section 171, then the taxable credit is deferred. It will not be triggered until a disposal of the shares or loan stocks first takes place outside the terms of Section 171.

Seek advice from CT&VAT (Technical) where the loan stock is transferred in circumstances where FA96/SCH9/PARA12 provides for continuity of treatment (see CTM56200onwards).

Assets disposed of by the transferee company

Where the non-resident company (‘the transferee’) transfers the intangibles acquired under the original transfer to another member of the worldwide group there will be a deferral of the taxable credit mentioned in CIRD42060. This deferral will last unless or until there is a transfer to a non-member of the worldwide group within six years of the original transfer. In those circumstances this will be deemed to represent a disposal by the transferee, and the result will be that a taxable credit will be charged on the original transferor.

See CIRD40030 for the definition of a group of companies and the absence of any requirement that group members must be UK resident.