CTM06070 - Corporation Tax: company reconstructions: without change in ownership: later events
ICTA88/S343 (7)
Section 343 (7) provides a further situation in which Section
343 treatment should be applied, if necessary re-opening
computations to do so. However cases where Section 343 (7) applies
are rare.
Section 343 (7) applies where:
- a transfer of a trade or part-trade between two companies never meets the common ownership test,
but
- within the next two years there is a further transfer to a third company.
Section 343 (7) is satisfied if common ownership of the trade is
established between the
first and
third companies under the normal one- and two-year
time span explained at
CTM06010. However this time span is
fixed by reference to the first transfer of trade.
When the conditions of Section 343 (7) are met, Section 343
applies to both transfers. This means, for example, that any unused
losses of the first company are deductible against any profits the
second company may have from the transferred trade or part-trade
before it was transferred to the third company.
