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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:

1. •

   TCGA 1992, s 139 (reconstruction relief for corporate capital gains)

2. •

   TCGA 1992, s 138 (reconstruction relief from capital gains tax for shareholders under TCGA 1992, s 136)

3. •

   CTA 2009, s 831(2) and CTA 2009, s 832 (intangibles reconstruction relief)

4. •

   ITA 2007, s 701 (transactions in securities)

The clearance