Commentary

D1.661 Intangible assets—company reconstruction involving transfer of business

Corporate tax
Corporate tax | Commentary

D1.661 Intangible assets—company reconstruction involving transfer of business

Corporate tax | Commentary

D1.661 Intangible assets—company reconstruction involving transfer of business

Where there is a company reconstruction involving the transfer of a business, any intangible fixed assets included in the transfer are treated as transferred on a tax neutral basis1. The implications of a tax neutral transfer are the same as for an intra-group transfer2 (see D1.646). Where a transfer qualifies both as part of a reconstruction and a transfer within a group of companies, the intra-group transfer rules take priority3.

A company reconstruction involves a 'scheme of reconstruction', which has the same meaning as for capital gains purposes (see D6.450). A scheme of reconstruction or amalgamation must involve the transfer of the whole or part of the business from one company to another and the transferor

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial