Commentary

B9.116 Further practical points concerning incorporation relief

Business tax
Business tax | Commentary

B9.116 Further practical points concerning incorporation relief

Business tax | Commentary

B9.116 Further practical points concerning incorporation relief

There are a number of situations where the relief under TCGA 1992, s 162 is particularly useful. Where a partnership or a sole trader's business is to be acquired by a company, it is common practice first to transfer the business to a newly formed company in consideration for shares with the protection of TCGA 1992, s 162. The shares are then the subject of a 'paper for paper' acquisition by the ultimate purchasing company which falls within TCGA 1992, s 135 (exchange of securities for those in another company, see D6.205), so

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