Commentary

D6.102 Definition of a reorganisation for capital gains purposes

Corporate tax
Corporate tax | Commentary

D6.102 Definition of a reorganisation for capital gains purposes

Corporate tax | Commentary

D6.102 Definition of a reorganisation for capital gains purposes

Statutory definition

The statutory definition of a reorganisation for capital gains purposes is widely drawn as a 'reorganisation or reduction of a company's share capital'1.

The share reorganisation provisions of TCGA 1992, ss 126–130 are largely concerned with the reorganisation of a single company's share capital. The same provisions are modified to apply to certain transactions involving more than one company. Therefore, exchanges of securities and schemes of reconstruction involving more than one company can also be treated as reorganisations for tax purposes, with the two companies being deemed to be a single company for that purpose. These are dealt with in Divisions D6.2–D6.5.

Reorganisation of share capital

A reorganisation of share capital includes the following2:

  1.  

    (a)     the

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