Value shifting and pre-sale dividends

The consultation process

The simplification review process on chargeable gains rules for companies has resulted in significant progress for which both HMRC and HM Treasury deserve much credit. In the main they have listened to businesses’ gripes over the complexity of the degrouping charge the pre-entry loss rules and the value shifting provisions and have responded helpfully.

However the approach taken by the new value shifting legislation to pre-sale dividends will give taxpayers and their advisers some difficult issues to grapple with.

[HMRC's] view is very difficult to square against the legislation

It has long been...