Demerger clearances

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

This guidance note contains specific comments on clearance applications as they refer to non-statutory and statutory demergers, and should be read in conjunction with the general guidance on drafting clearance applications in the HMRC clearance applications ― overview guidance note.

For overall guidance on demergers, including choice of the most appropriate route and planning the demerger project, see the Demergers ― overview guidance note.

Non-statutory demergers - clearance

A non-statutory demerger may involve several steps in order to achieve the desired result. These will differ depending on the circumstances but typically will require clearance under the following provisions:

•
TCGA 1992, s 139 (reconstruction relief for corporate capital gains)
•
TCGA 1992, s 138 (reconstruction relief from capital gains tax for shareholders under TCGA 1992, s 136)
•
CTA 2009, s 831(2) and CTA 2009, s 832 (intangibles reconstruction relief)
•
ITA 2007, s 701 (transactions in securities)

The clearance

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