Sandy Bhogal (Mayer Brown) examines a recent tribunal case on whether certain insolvency procedures amount to a change of control for group relief purposes and looks at the potentially significant ramifications.
HMRC is known to take the view that the commencement of certain types of insolvency procedure constitutes a change of control for corporation tax purposes such that group relief surrenders may be denied. In particular this view has been expressed in HMRC’s published guidance (see for example HMRC’s Company Taxation Manual at CTM97760) in relation to liquidations administrations and administrative receiverships.
The specific legislative provision dealing with group relief which is often cited in this regard and needs to be considered upon the commencement of an insolvency procedure is now found at CTA 2010 s 154 (formerly ICTA 1988 s 410). Broadly this provision...
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Sandy Bhogal (Mayer Brown) examines a recent tribunal case on whether certain insolvency procedures amount to a change of control for group relief purposes and looks at the potentially significant ramifications.
HMRC is known to take the view that the commencement of certain types of insolvency procedure constitutes a change of control for corporation tax purposes such that group relief surrenders may be denied. In particular this view has been expressed in HMRC’s published guidance (see for example HMRC’s Company Taxation Manual at CTM97760) in relation to liquidations administrations and administrative receiverships.
The specific legislative provision dealing with group relief which is often cited in this regard and needs to be considered upon the commencement of an insolvency procedure is now found at CTA 2010 s 154 (formerly ICTA 1988 s 410). Broadly this provision...
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:
