286.3 Merger relief

286.3 Merger relief

In circumstances where the first exception (group reconstruction relief) does not apply1, the parties may be able to take advantage of the second. This exception applies where the issuing company has entered into an arrangement whereby it agrees to issue equity share capital in exchange for the issue or transfer to it of equity shares in another company, or the cancellation of any equity shares not held by the issuing company2. Where the issuing company thereby secures at least a 90% equity holding in the other company, there is no need for it