Nov 252013
 

The following is an overview of some of the main tax issues that arise when a business is sold. We shall assume in this case that we have a corporate buyer and a corporate seller. We shall also assume both parties to the transaction are subject to UK corporation tax and that the business is a trading operation. Continue reading »

The Degrouping Rules and the Subgroup Exception – what does the legislation say?

 Corporate Groups, Corporate Tax, IP Tax  Comments Off on The Degrouping Rules and the Subgroup Exception – what does the legislation say?
Aug 232013
 

In our last article on corporate groups, we looked at the subgroup exception as it applies to intra-group transfers. We showed, using both numerical and visual examples, why there should be an exception. In this article we shall see how the tax legislation ensures that this is indeed the case. As before, we shall be concentrating on the rules for capital assets – the rules for IP are similar. Continue reading »

The Degrouping Rules and the Subgroup Exception – an Overview

 Corporate Groups, Corporate Tax, IP Tax  Comments Off on The Degrouping Rules and the Subgroup Exception – an Overview
May 062013
 

As has been stated in previous articles, the degrouping rules are designed to prevent assets from being smuggled out of a group tax free under the protection of a corporate wrapper. This is achieved by imposing a tax liability when a company acquires an asset from a fellow group member and subsequently leaves the group within the next 6 years. 

But for every rule, there is an exception. Continue reading »

Corporate Groups and the Degrouping Rules – Comparing Capital Gains and IP Groups

 Corporate Groups, Corporate Tax, IP Tax  Comments Off on Corporate Groups and the Degrouping Rules – Comparing Capital Gains and IP Groups
Apr 222013
 

We have seen in previous articles how the degrouping rules operate to prevent the use of a corporate vehicle to shelter taxable gains. There are two sets of rules, one for capital assets and the other for intangibles (“IP”). In this article we shall look at how these rules differ, giving a specific example involving a business sale.

(This article can be downloaded in pdf format at Academia.edu.)

Continue reading »

Corporate Tax Groups – Degrouping IP

 Corporate Groups, Corporate Tax, IP Tax  Comments Off on Corporate Tax Groups – Degrouping IP
Apr 212013
 

In this article, we shall discuss the degrouping rules as they apply to intangible assets such as IP and goodwill (collectively referred to as IP). The tax treatment is similar to that applying to capital assets, but with important differences.

(This article can be downloaded in pdf format at Academia.edu.) Continue reading »

Corporate Tax Groups – the Capital Gains Degrouping Rules – Part Two

 Corporate Groups, Corporate Tax  Comments Off on Corporate Tax Groups – the Capital Gains Degrouping Rules – Part Two
Mar 192013
 

In Part One, we saw how the degrouping rules prevent capital assets from leaving a group tax free within a corporate wrapper. This article finishes off with a few miscellaneous, but important points concerning the operation of these rules.

(This article is Part Two of a two part mini-series on the Capital Gains Degrouping Rules. Both parts can be read in a single article in pdf format which can be downloaded at Academia.edu.)

Continue reading »

Corporate Tax Groups – the Capital Gains Degrouping Rules – Part One

 Corporate Groups, Corporate Tax  Comments Off on Corporate Tax Groups – the Capital Gains Degrouping Rules – Part One
Mar 172013
 

This is the third article in our series on corporate tax groups where we explore the rules governing intra-group transactions, and how they are taxed. In this article we shall look at the rules relating to capital assets.

(This article is Part One of a two part mini-series on the Capital Gains Degrouping Rules. Both parts can be read in a single article in pdf format which can be downloaded at Academia.edu.)

Continue reading »