Commentary on Sections Overview Chapter 5: Continuity of treatment on transfers within groups Section 630: Introduction to sections 631 and 632
1723.This section and the next two provide for a deemed assignment of the derivative contract in question if a transferee within section 625 ceases to be a member of the group of companies mentioned in section 626(2) or (3). This section sets out when sections 631 and 632 apply and defines terms used in this and those sections. It is based on paragraph 30A(1), (5A) and (8) of Schedule 26 to FA 2002.
1724.If section 625 applies because of a series of transactions within section 626(3), the relevant time limit in respect of the transferee leaving the relevant group of companies before the end of a six year period begins with the last of the transactions in the series of transactions. This contrasts with the rule in section 625(3) which determines the consideration to be brought into account by the transferor by reference to the first transaction in the series.
1725.The rules in these sections take priority if the rules in section 609 or 610 would apply in the same circumstances (see the commentary on those sections).