Commentary

B9.114 Transfer of liabilities on incorporation

Business tax
Business tax | Commentary

B9.114 Transfer of liabilities on incorporation

Business tax | Commentary

B9.114 Transfer of liabilities on incorporation

Business liabilities

Strictly, business liabilities taken over by the company represent additional consideration for the transfer and incorporation relief should be restricted, as this contravenes the provision that the relief is only available where the transfer is wholly or partly in consideration for the issue of shares (see B9.111). However, by concession1 HMRC does not treat such liabilities as part of the consideration for the transfer, so if the other conditions of TCGA 1992, s 162 outlined in B9.112 are satisfied, full incorporation relief is still available. Relief is also not precluded by the fact

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