| Commentary

286.2 Group reconstruction relief

| Commentary

286.2 Group reconstruction relief

The first exception applies to company reorganisations where all the participating companies are members of the same group1. Where a wholly-owned subsidiary of a parent company allots shares to that parent company, or to another wholly-owned subsidiary of the parent company, in consideration of the transfer to it of assets other than cash2, the issuing company may effectively treat the consideration for the issue as being the cost of the assets to the transferor company or, if less, the amount at which those assets are stated in its accounting records immediately before

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