Commentary

3.3 Reconstruction involving transfer of the business to another company

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

3.3 Reconstruction involving transfer of the business to another company

| Commentary

3.3 Reconstruction involving transfer of the business to another company

Under the Taxation of Chargeable Gains Act 1992 Section 1391, so long as both companies are UK resident and there is no consideration for the transfer of the business other than the transferee company taking over all or part of the liabilities of the business, a transfer of a business will be treated as if the assets included in the transfer were acquired on a no gain/no loss basis. This type of reconstruction differs from a Section 136 reconstruction by enabling a ring fencing of the assets into

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