Jenny Doak and Akash Mehta (Weil, Gotshal & Manges) discuss some key considerations for M&A transactions.
UK rules
Before looking at global trends it is worth noting that the UK introduced non-resident taxation on chargeable gains back in 1973 in the form of what is now TCGA 1992 s 276. This provides that non-residents which otherwise do not have a permanent establishment in the UK are subject to chargeable gains on disposals of ‘exploration or exploitation assets’ and ‘exploration or exploitation rights’. This section also covers disposals of unquoted shares (and certain securities) ‘deriving the value or the greater part of their value directly or indirectly’ from exploration or exploitation assets or rights. The shares being disposed of do not have to be in a company engaged in oil and gas production; they may be (and often are) in a company higher up the chain of ownership.
Much more recently readers will be...
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Jenny Doak and Akash Mehta (Weil, Gotshal & Manges) discuss some key considerations for M&A transactions.
UK rules
Before looking at global trends it is worth noting that the UK introduced non-resident taxation on chargeable gains back in 1973 in the form of what is now TCGA 1992 s 276. This provides that non-residents which otherwise do not have a permanent establishment in the UK are subject to chargeable gains on disposals of ‘exploration or exploitation assets’ and ‘exploration or exploitation rights’. This section also covers disposals of unquoted shares (and certain securities) ‘deriving the value or the greater part of their value directly or indirectly’ from exploration or exploitation assets or rights. The shares being disposed of do not have to be in a company engaged in oil and gas production; they may be (and often are) in a company higher up the chain of ownership.
Much more recently readers will be...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
