The following Tax guidance note provides comprehensive and up to date legal information covering:
FORTHCOMING CHANGE relating to transfers within an EU group: Finance Bill 2019–20 will contain provisions permitting companies to pay tax in instalments in relation to disposals of assets to companies resident in an EEA State (other than the UK) which would take place on a ‘no gain no loss’ basis if the transferee were UK-resident, either under the reconstruction rule in section 139 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992) or under the intra-group transfer rules in TCGA 1992, s 171. This measure will also apply to intra-group transfers of loan relationships, derivative contracts or intangible fixed assets to another company resident in an EEA State. The new rule is in response to a 2019 decision of the UK First-tier Tribunal, see News Analysis: First-Tier Tribunal relies on freedom of establishment to partially disapply UK rules on tax-free intra-group transfers (Gallaher Limited v HMRC). The provisions will apply retrospectively from 11 July 2019 in relation to accounting periods ending after 9 October 2018.
Companies which form a group for capital gains purposes are able to transfer assets to one another free of corporation tax on chargeable gains.
Each company is a separate legal person for tax purposes meaning that, in the absence of a special rule, an intra-group transfer of a capital asset between companies would be a disposal
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234