| Commentary

59 Corporation tax

| Commentary

5: DISPOSAL OF BUSINESS ASSETS

59 Corporation tax

Many company reorganisations involve the transfer of the whole or part of a (target) company’s business to another (acquiring) company. Under normal rules, any gain on the transfer of chargeable assets gives rise to a charge to corporation tax. Any assets included in the transfer are, however, treated as if they were acquired by the acquiring company from the target company for such a consideration as will result in neither a gain nor a loss for the disposing company provided certain conditions are satisfied.

The conditions are1:

  1. 59.1

        there must be a scheme of

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