The following Tax guidance note Produced in partnership with Anne Fairpo of Temple Tax Chambers provides comprehensive and up to date legal information covering:
The corporate intangibles tax rules contain a number of provisions for relief from tax on the transfer of a business or trade.
These reliefs require the transfer:
to be made for genuine commercial reasons, and
not to form part of a scheme or arrangements a main purpose of which is to avoid tax
The genuine commercial purposes test will be met where the taxpayer:
applies for clearance before the transfer, and
has obtained confirmation from HM Revenue & Customs (HMRC) that it accepts that the transfer is for genuine commercial reasons
The clearance should be requested in good time, as HMRC have 30 days to respond to the application, but may respond by requesting further information. They have a further 30 days from receiving that further information to provide their decision.
It is not a requirement of the relief that the application be made and confirmation received, but it can provide comfort for the taxpayer where confirmation is obtained beforehand.
Where certain conditions are met, the transfer of intangible fixed assets as part of the transfer of a business on the reconstruction of a company will be tax neutral.
The conditions are that:
there must be a scheme of reconstruction
the transferor must not receive any consideration other than the assumption of the business liabilities by the transferee
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