Demergers: overview

1. Other tax charges

1.1. Intangible fixed assets

1.1.1. Reconstruction relief

1.2. Loan relationships

1.3. Derivative contracts

1.4. Trading stock

1.5. Capital allowance assets

1.5.1. Transfer of trade without change of ownership

2. Chargeable gains: Distributing company

2.1. Reliefs

2.1.1. SSE applies but not s. 139

2.1.2. TCGA 1992, s. 139 relief

2.1.3. Chargeable gains base cost

2.1.4. Capital losses

3. Chargeable gains: Shareholders

3.1. Reliefs

3.1.1. SSE

3.1.2. Exempt distribution on a direct subsidiary demerger

3.1.3. TCGA 1992, s. 136 relief

3.1.4. Business asset disposal relief

3.1.4.1. (formerly Entrepreneurs' Relief)

4. Income tax charge: Shareholders

4.1. Reliefs

4.1.1. Exempt distribution

4.1.2. Liquidation

4.1.3. Capital reduction

5. Demerger types

5.1. Separation demerger

5.2. Partition demerger

6. Demerger distributions

6.1. Direct subsidiary distribution

6.2. Indirect subsidiary distribution

6.3. Indirect trade distribution

7. Degrouping charges

7.1. Chargeable gains

7.2. Intangible fixed assets

7.3. Loan relationships & derivative contracts

7.4. SDLT

8. Stamp duty: Successor company

9. SDLT: Successor company

10. Tax losses

10.1. Major change in nature or conduct of a trade

10.2. Group relief restriction