Reorganisations / reconstructions

By Tolley

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

  • Reorganisations / reconstructions
  • Reconstructions / demergers
  • EU cross-border transfers of business ― EU Mergers Directive

Reliefs for reorganisations and reconstructions are available in respect of intangible fixed assets with rules that effectively provide the same reliefs which are available for assets within the scope of corporation tax on capital gains.

Reconstructions / demergers

Any intangible fixed assets transferred as part of a company reconstruction, including a demerger, involving the transfer of a business or part of a business are treated as transferred on a tax-neutral basis. This operates in the same way as for an intra-group transfer. The rules on intra-group transfers take precedence if the reconstruction involves a transfer within a group.

CTA 2009, s 818

The conditions for the tax-neutral transfer are that:

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