Commentary

B9.202 Effect of claim for disincorporation relief

Business tax
Business tax | Commentary

B9.202 Effect of claim for disincorporation relief

Business tax | Commentary

B9.202 Effect of claim for disincorporation relief

Note that this relief does not apply from 1 April 2018.

Where a claim is made in respect of a transfer under FA 2013, s 57, the consideration for the disposal of the qualifying assets (ie goodwill and interests in land which is not held as trading stock, but see below regarding post-FA 2002 goodwill) is the lower of1:

  1.  

    (a)     the acquisition expenditure allowable under TCGA 1992, s 38 for those assets (see C2.202); and

  2.  

    (b)     the market value

The result is that no chargeable gain arises. The deemed consideration is the deemed base cost

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