Speed Read: Buyers in private M&A expect protection by their tax indemnity if group relief surrendered to target proves unavailable but should also consider outstanding payments owed or owing for group relief and repayments owed for failed surrenders. Sellers are concerned to maximise loss utilisation by surrenders to or from target and offset liability under the deed by additional surrenders. Most decent precedents should deal with these points but seldom focus on possible reallocations of valid group relief by the seller. Buyers should be wary of the impact of general wording around seller's control of target's tax affairs exclusions and claims thresholds.
The surrender of group relief under Chapter IV Part X of ICTA 1988 is supposed to be a neutral event for...
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Speed Read: Buyers in private M&A expect protection by their tax indemnity if group relief surrendered to target proves unavailable but should also consider outstanding payments owed or owing for group relief and repayments owed for failed surrenders. Sellers are concerned to maximise loss utilisation by surrenders to or from target and offset liability under the deed by additional surrenders. Most decent precedents should deal with these points but seldom focus on possible reallocations of valid group relief by the seller. Buyers should be wary of the impact of general wording around seller's control of target's tax affairs exclusions and claims thresholds.
The surrender of group relief under Chapter IV Part X of ICTA 1988 is supposed to be a neutral event for...
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:
