Demerger clearances

Produced by Tolley

The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Demerger clearances
  • Non-statutory demergers
  • Statutory demergers
  • Additional reporting obligations
  • Refusal of demerger clearances

Demerger clearances

This guidance note 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 HMRC clearance applications ― overview guidance note.

For overall guidance on demergers, including choice of the most appropriate route and planning the demerger project, see the Demergers ― overview 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 cap

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