Commentary on Sections Overview Overview Section 257: Transfer involving person within the charge to income tax
923.This section ensures that entitlement to a deduction for expenditure on sea walls continues properly when the interest in the premises is transferred between a corporation tax payer and an income tax payer. It is based on section 30(2A) of ICTA. The corresponding rule for income tax is in section 318 of ITTOIA.
924.Entitlement to a deduction for expenditure on sea walls can be transferred with ownership of the premises. That transfer can be between a corporation tax payer and an income tax payer. Section 255 deals with transfers between corporation tax payers. But it cannot deal with a transfer from a corporation tax payer to an income tax payer or the reverse because the provisions in this Act apply only to corporation tax payers.
925.Section 257 allows the seawalls provisions in this Act to work properly in respect of the party to the transfer who is subject to corporation tax.
926.Subsection (4) signposts to the provisions in ITTOIA that deal with the party to the transfer who is subject to income tax.