Paper for paper treatment clearances

By Tolley

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

  • Paper for paper treatment clearances
  • <a class="remotelink" href="/tolley/guidance/corporatetax/linkHandler.faces?linkInfo=F%23GB%23UK_ACTS%23sect%25138%25num%251992_12a%25section%25138%25&amp;A=0.3977695493446527&amp;bct=A&amp;ps=&amp;risb=&amp;service=citation&amp;langcountry=GB" target="_parent">TCGA 1992, s 138</a> clearances
  • Drafting the clearance
  • Transactions in securities

TCGA 1992, s 138 clearances

In order for shareholders in a paper for paper exchange to have some certainty as to their tax position, there is a statutory clearance procedure available under TCGA 1992, s 138. This provides that the taxpayer can request clearance that TCGA 1992, s 137 does not apply, ie that the transaction is for bona fide commercial reasons and the main purpose of which is not for tax avoidance. TCGA 1992, s 138 does not provide for a clearance procedure in respect of the other requirements for paper for paper treatment, eg ownership requirements. It is worth notin

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