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Section 140I: Division of business or transfer of assets

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part IV: Shares, securities, options etc. — Chapter II: Reorganisation of share capital, conversion of securities etc.

This section applies in relation to a transfer of a business, or part of a business, where—

the transfer is of a kind mentioned in section 140A(1) or (1A) (or which would be of such a kind if the business, or the part of the business, transferred were carried on by the transferor in the United Kingdom and the condition mentioned in section 140A(1)(e) were satisfied in relation to the transferee, or each of the transferees), and
either the transferor or the transferee, or one of the transferees, is a transparent entity.

Where this section applies—

if the transferor is a transparent entity, sections 140A and 140DA do not apply in relation to the transfer;
if a transferee is a transparent entity, section 140DA does not apply in relation to the transfer to it.

If, as a result of a transfer in relation to which this section applies, a transfer gain would, but for the Mergers Directive, have been chargeable to tax under the law of a member State ..., Part 2 of TIOPA 2010 (double taxation relief), including any double taxation relief arrangements, shall apply as if that tax, calculated in accordance with subsection (5), had been chargeable.

In subsection (3) "transfer gain" means a gain accruing to a transparent entity (or which would be treated as accruing to that entity were it not transparent) by reason of the transfer of assets by the transparent entity to the transferee.

Tax is calculated in accordance with this subsection if—

so far as permitted under the law of the relevant member State, losses arising on the transfer are set against gains arising on the transfer, and
any relief available under that law has been claimed.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.