Commentary on Sections Overview Overview Section 426: Tax avoidance etc
1254.This section disapplies the Chapter if the transfer of business is not effected for genuine commercial reasons unless the Commissioners for HMRC are satisfied, following an application, that the Chapter should apply. It is based on paragraph 12F(1) and (2) of Schedule 9 to FA 1996.
1255.In subsection (1)(a) “bona fide commercial reasons” is rewritten as “genuine commercial reasons”.