| Commentary

270.2 The basic charge

| Commentary

270.2 The basic charge

The business which is transferred under the terms of a company reconstruction is likely to contain various assets which are chargeable assets under the capital gains tax regime. Where the disposal of these assets creates a chargeable gain, the company will generally be liable for corporation tax on that profit in the usual way. However, in most cases of company reconstruction, relief from the immediate payment of tax is available1.

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