Demerger clearances

Produced by Tolley
Demerger clearances

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Demerger clearances
  • Non statutory demergers
  • Statutory demergers
  • Reporting requirement
  • Refusal of clearance

The guidance below contains specific comments on clearance applications as they refer to non-statutory and statutory demergers, and should be read in conjunction with the general guidance on drafting clearance applications in the Drafting clearance applications guidance note.

Non statutory demergers

A non statutory demerger may involve several steps in order to achieve the desired result. These will differ depending on the circumstances but typically will require clearance under the following provisions:

  1. TCGA 1992, s 139 (reconstruction relief for corporate capital gains)

  2. TCGA 1992, s 138 (reconstruction relief from capital gains tax for shareholders under

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