The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The main implications of companies being grouped for capital gains purposes are:
transfers between group members are at no-gain / no-loss
degrouping charges may arise where there has been a previous no-gain / no-loss transfer and the transferee company leaves the group within six years
groups can elect for assets to be deemed to have been transferred on a no-gain / no-loss basis
rollover relief may be applied on a group-wide basis
There are similar rules relating to intangible fixed assets. There are also exemptions from both stamp duty and stamp duty land tax for transfers between group companies. Both of these sets of rules include provisions to claw back relief in certain circumstances.
Please note that changes were made to the corporate gains rules for groups of companies by Finance Act 2011 with effect from 19 July 2011. The measures introduced 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 which were considered to be redundant.
See the Degrouping charges and How does SSE interact with other legislation? guidance notes for details of how the rules differ before and after 19 July 2011.
An overview of the regime is provided in the Group capital gains (A) video, which includes a discussion of the key definitions, intra-group transfers, corporate capital losses and transfers of trading stock within a group. Examples are also used to explain these concepts.
Companies are in the same capital gains group when one company owns at least 75% of the ordinary shares of another company or when two companies are 75% owned by the same parent.
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