Demerger via a liquidation - overview

By Tolley

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

  • Demerger via a liquidation - overview
  • Process
  • Illustration of a typical demerger via a liquidation

In certain circumstances the statutory demerger route may not be available. For example:

  • the company does not have sufficient distributable reserves
  • there are plans to sell the demerged business or businesses
  • the business which is being demerged is not a trading business

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