Commentary

D7.4111 Assets of the shareholders' fund

Corporate tax
Corporate tax | Commentary

D7.4111 Assets of the shareholders' fund

Corporate tax | Commentary

D7.4111 Assets of the shareholders' fund

It was anticipated when FA 2012, Pt 2 was being drafted that the separate shareholders' fund would disappear for regulatory purposes on the introduction of the Solvency II regime (which occurred on 1 January 2016). As such a mechanism needed to be established to replicate as far as possible the shareholders' fund for tax purposes, the result being the regime for long-term business fixed capital (see D7.410).

Similarly it was necessary to set out how assets of the shareholders' fund would move to the new regime1.

On transition, assets of the shareholders' fund are grandfathered

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