The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note covers rules applicable to companies who are in a group for capital gains purposes. For more information on the definition of a gains group, and an overview of the consequences, see the Group gains guidance note.
For the treatment of degrouping charges for assets within the intangible regime post 2002, see the Degrouping charges and elections ― IFAs guidance note.
As well as the capital gains degrouping rules there are rules linked to clawback provisions in relation to exempt group transfers for Stamp Duty and Stamp Duty Land Tax.
Please note that changes to the corporate gains rules for groups of companies were made by Finance Act 2011. The measures mainly aimed to simplify the tax treatment of chargeable gains for corporate groups, with changes to degrouping charges, SSE and the repeal of certain measures now considered redundant. See below for details.
The changes have effect from 19 July 2011, the date of Royal Assent. However, companies can elect to apply the new rules relating to degrouping charges in respect of share transfers between 1 April 2011 and that date.
Assets are transferred between group companies on a no gain / no loss basis. However, if a company leaves the group within six years of an intra-group transfer, whilst still owning the transferred asset, a ‘degrouping’ or ‘exit’ charge will arise. Degrouping charges also arise where a rollover relief claim was made in respect of an asset transferred intra group, and the transferor company leaves the group owning the ‘replacement’ asset.
Degrouping charges are a key area of risk on the acquisition of a company. For disposals before 19 July 2011, the gain itself is taxed on the departing company in the chargeable accounting period of it leaving the group. If there are latent degrouping charges as a result of a previous intra-group transfer then the purchasing group will want to mitigate the risk that it will bear the charge. This may be
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.