632 Transfer of assets by company to its parent company.

[FA92 s66]

(1) Where a company disposes of an asset used for the purposes of a trade carried on by it in the State to another company which holds all of the securities representing the company’s capital and but for this section the companies would not be treated in accordance with section 617 in respect of the asset, then, if—

(a) immediately after the disposal the company acquiring the asset commences to use the asset for the purposes of a trade carried on by it in the State, and

(b) the disposal is not, or does not form part of, a transfer to which section 631 applies,

sections 617 to 619 shall apply as if the companies were resident in the State.

(2) Subsection (5) of section 631 shall apply with any necessary modification for the purposes of this section as if references in that subsection to subsections (2) to (4) of that section were references to subsection (1) of this section.