308A Assets transferred in course of scheme of reconstruction or amalgamation.

(1) In this section “scheme of reconstruction or amalgamation” means a scheme for the reconstruction of any company or companies or the amalgamation of any 2 or more companies.

(2) Where—

(a) any scheme of reconstruction or amalgamation involves the transfer of the whole or part of the trade of a company (in this section referred to as the “transferring company”) to another company (in this section referred to as the “acquiring company”),

(b) (i) the acquiring company is resident in the State at the time of the transfer, or the acquiring company uses the assets of the transferred trade for the purposes of a trade carried on by it in the State through a branch or agency immediately after that time, and

(ii) the transferring company is resident in the State at the time of the transfer, or the trade was carried on by it in the State through a branch or agency immediately before that time,

and

(c) the transferring company receives no part of the consideration for the transfer (otherwise than by the acquiring company taking over the whole or part of the liabilities of the trade),

then, subject to subsection (4), subsection (3) shall apply in relation to the assets of the trade transferred by the transferring company.

(3) Where this subsection applies—

(a) the transfer shall not be treated as giving rise to any allowance or charge provided for by section 307 or 308, and

(b) there shall be made to or on the acquiring company in accordance with sections 307 and 308 all such allowances and charges as would, if the transferring company had continued to carry on the trade and had continued to use the transferred assets for the purposes of the trade, have been made to or on the transferring company in respect of any assets transferred in the course of the transfer, and the amount of any such allowance or charge shall be computed as if the acquiring company had been carrying on the trade since the transferring company began to do so and as if everything done to or by the transferring company had been done to or by the acquiring company.

(4) Subsection (3) shall not apply as respects assets transferred in the course of a transfer if in consequence of the transfer, or a transaction of which the transfer is a part, the Corporation Tax Acts are to apply subject to subsections (6) to (9) of section 400.