283 Degrouping charge

Where the transferred company has previously acquired capital assets from the transferor or other members of the same group of companies, those acquisitions will generally have been deemed to have taken place for a consideration of such amount as would produce neither a gain nor a loss1. If the recipient company ceases to be a member of that group within a period of six years after acquiring the asset, then it will be treated as if it had sold and immediately re-acquired the asset at market value2. As a result, it will be liable to corporation tax

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial