Introduction Overview Overview Section 949: Dual resident investing companies
2820.This section prevents the successor from benefiting from section 948 if it is a dual resident investing company. It is based on section 343(2) of ICTA.
2821.The source legislation refers to section 404 of ICTA. Section 404 of ICTA is rewritten in section 109. As far as possible, this section is conformed to that section.
2822.The source legislation defines “dual resident investing company” by reference to section 404 of ICTA but does not spell out how the reference in that section to “the material accounting period” is to be applied in the context of transfers of trade. This section uses the concept of “the transfer accounting period” to bring out the implicit requirements of the source legislation. This is a drafting clarification which does not change the law.
2823.Subsection (1) is the main operative provision.
2824.Subsection (2) specifies when a company is a dual resident investing company.
2825.Subsection (3) defines the expression “dual resident company”, which is used in subsection (2)(a), and subsections (4) to (6) specify the conditions mentioned in subsection (2)(b).
2826.Subsection (7) defines “non-UK tax”, “trading company” and “the transfer accounting period”.