Exception for tax avoidance cases and clearancesU.K.
686Tax avoidance etcU.K.
(1)This Chapter does not apply in relation to the merger if—
(a)the merger is not effected for genuine commercial reasons, or
(b)the merger forms part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoiding liability to corporation tax, capital gains tax or income tax.
(2)But subsection (1) does not prevent this Chapter from applying if before the merger—
(a)any of the merging companies has applied to the Commissioners for Her Majesty's Revenue and Customs, and
(b)the Commissioners have notified the merging companies that they are satisfied that subsection will not have that effect.
(3)Sections 678 and 679 have effect in relation to subsection (2) as in relation to section 677(2), taking the references in section 679 to section 677(2)(b) as references to subsection (2)(b) of this section.