UK tax forms

Transfer of trade

This section is designed to analyse the section 940 transfers of trade. Transfer of trade is split into 2 sheets:
  • Section 940A Trade transfer in
    .
  • Section 940A Trade transfer out
    .
Both sheets combine the transfer of both pooled and non-pooled assets and are applicable to the accounting period the date of transfer corresponds to.
These sheets are used for any incoming or outgoing transfers of trade from or to a transferor or transferee. Therefore, if you have multiple transfers in or out, you'll need to develop multiple sheets.

Completing the sheets

Section 940A Trade transfer In
After you develop the sheet, you'll need to provide the date of transfer and the date of transferor's previous period end. After you enter these details, you can add the transfer values of the assets you've acquired. You can then enter the pooled and non-pooled assets details in the sections. By using the selectors at the end of the sheet, you can include rows for the capital allowance types of the assets transferred in. If you've added a capital allowance type and not developed the corresponding working paper, an error message prompts you to add the sheet.
Each
Section 940A Trade transfer in
 sheet inserts a row in the corresponding pooled sheet within the
TWDV transfers in under CTA 2010 s948
 section. Each non-pooled asset entered inserts a row in its respective allowance sheet.
Section 940A Trade transfer out
After you develop the sheet, you'll need to provide the date of transfer and the date of the transferee’s next period end. After you've entered these details, you can add the transfer values of the pooled assets you've disposed of. A row is inserted onto each pooled sheet under the
TWDV transfers out (-) under CTA 2010 s948
 section for the corresponding amounts transferred out. The
Main pool
 and
Special rate pool
 have an additional row inserted under the
TWDV of FYA asset transfers out (-) under CTA 2010 s948
 section.
For any non-pooled assets transferred out, you'll need to show this on the capital allowance sheet directly. You can use a dropdown list to select the transferee once this sheet is inserted. A row is inserted in the transfer out sheet for the assets selected to be transferred to the transferee.
You'll need to enter amounts manually for the allowance not available.
UK trade losses
When a trade has been transferred into a company, you may need to insert a new trade into that company’s computation. In the
UK trade losses
sheet for this new trade (or for an existing trade, if appropriate), the amount of trade losses that have transferred in should be entered on the
Losses transferred in
 row.
When a trade has been transferred out of a company, any trade losses that are being transferred out to another company should be entered on the
Losses transferred out
row.

This article applies to:

  • PRODUCT: ONESOURCE Corporate Tax

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