Part 2 Reconstruction and Acquisition Reliefs
Finance Act 2003 (2003 c 14) | Legislation

Part 2 Reconstruction and Acquisition Reliefs

Reconstruction relief

7

(1)     Where—

(a)     a company (“the acquiring companyâ€) acquires the whole or part of the undertaking of another company (“the target companyâ€) in pursuance of a scheme for the reconstruction of the target company, and

(b)     the first, second and third conditions specified below are met,

a land transaction entered into for the purposes of or in connection with the transfer of the undertaking or part is exempt from charge.

Relief under this paragraph is referred to in this Part as “reconstruction reliefâ€.

(2)     The first condition is that the consideration for the acquisition consists wholly or partly of the issue of non-redeemable shares in the acquiring company to all the shareholders of the target company.

“Non-redeemable shares†means shares that are not redeemable shares.

(3)     Where the consideration for the acquisition consists partly of the issue of non-redeemable shares as mentioned in the first condition, that condition is met only if the rest of the consideration consists wholly of the assumption or discharge by the acquiring company of liabilities of the target company.

(4)     The second condition is that after the acquisition has been made—

(a)     each

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