CTM34480 - Residence: avoidance transactions: text of old Treasury general consents

Consent to the following classes of transactions:

1) Transactions falling within subheads (a) and (b) of subsection (1) where:

a) the body corporate resident in the UK is incorporated after the passing of the FA51, for the purpose of carrying on a new trade or business not theretofore carried on by any person; and

b) more than 50% of the issued share capital of that body corporate in existence at the time of the transactions in question, or, if there is then in existence issued share capital of the body corporate of more than one class, more than 50% of the issued share capital thereof of each class is then, and was when it was issued, in the beneficial ownership of persons not ordinarily resident in the UK.

2) A transaction falling within subhead (c) of subsection (1) which consist of the issue, by a body corporate not resident in the UK over which a body corporate resident in the UK has control of shares for full consideration paid in cash to the body corporate issuing the shares or in or towards payment for any business undertaking or property acquired for full consideration, unless either:

a) the shares are redeemable preference shares; or

b) the shares are issued to, or to trustees for, a body corporate not resident in the UK over which the body corporate resident in the UK has control or to, or to trustees for, an individual or individuals who has or have control over the last mentioned body corporate; or
c) the effect of the transaction is that the last mentioned body corporate will no longer have control over the body corporate not resident in the UK.

3) A transaction falling within subhead (d) of subsection (1) which consists of the transfer of shares to a body corporate resident in the UK unless the effect of the transaction is that a body corporate resident in the UK which transfers the shares or causes or permits the shares to be transferred will no longer have control over the body corporate not resident in the UK.

4) A transaction falling within subhead (c) of subsection (1) where the body corporate which is not resident in the UK was incorporated after 31 December, 1951, for the purpose of starting and carrying on a new industrial activity in any Commonwealth territory and is resident in that Commonwealth territory.

'Industrial activity' means any productive, extractive or manufacturing industry, any public utility, fisheries or any form of husbandry.

5) A transaction falling within subhead (b) of subsection (1) which consists of the outright sale of a business or part of a business to a person not resident in the UK, provided that:

a) the sale is for full consideration paid in cash,

b) the consideration for the sale does not exceed £50,000,

c) the buyer is not a body corporate over which persons ordinarily resident in the UK have control,

d) the buyer has no interest in the business of the seller, and the seller has no interest in the business of the buyer, and

e) the sale is not associated with any other operation, transaction or arrangement whereby the business (or the part of a business) which is sold, or any interest in that business (or part of a business), may revert to the seller or to any person who has an interest in the business of the seller.