Tax Aspects of UK Corporate Demergers
Recorded May 2025 · Episode 11 · 14:57
In this episode I work through the tax treatment of corporate demergers, the process by which a company or group is split into separate parts. I explain the three principal routes — the statutory (exempt) demerger, the capital reduction demerger and the liquidation demerger under the Insolvency Act — and the circumstances in which each is appropriate. I consider the corporation tax, capital gains tax, stamp duty and income tax issues that arise, the importance of clearance, and the practical and commercial factors that tend to determine which route is taken.
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