Commentary

D6.524 Transfer of non-UK business to a company resident in an EU member state

Corporate tax
Corporate tax | Commentary

D6.524 Transfer of non-UK business to a company resident in an EU member state

Corporate tax | Commentary

D6.524 Transfer of non-UK business to a company resident in an EU member state

Special rules apply where the whole or part of a business which a UK company carries on through a permanent establishment in an EU member state is transferred to a company resident in a member state. In such situations, the transferor company can claim double taxation relief for the tax which would have arisen had the transfer not been covered by the Mergers Directive1. These provisions give effect to the European Union Mergers Directive (No 2009/133/EC; formerly No 90/434/EEC) dealing with cross-border business reorganisations.

This treatment cannot be claimed where a claim is made under the non-EU provisions (D6.523)2.

Prior to IP completion day, a UK company was able to benefit from the application of the Mergers Directive across all EU member states. From IP completion day, the UK is regarded as a third country, so that the benefit of the Mergers Directive in the

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