Part V Transfer of business assetsF2, entrepreneurs' relief and investors' relief
Chapter IF3Transfer of business assets: General provisions
Words in Pt. 5 Ch. 1 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(2)
F1Transfer of business from company to shareholders
Ss. 162B, 162C and cross-heading inserted (with effect in accordance with s. 61(6) of the amending Act) by Finance Act 2013 (c. 29), s. 61(1)
162BDisincorporation relief: assets (including pre-FA 2002 goodwill)
1
This section applies where—
a
a company transfers its business to some or all of the shareholders of the company, and
b
a claim for disincorporation relief in respect of the transfer has been made under section 58 of the Finance Act 2013.
2
The disposal and acquisition of any qualifying asset of the business included in the transfer is to be deemed to be for a consideration equal to the lower of—
a
the sums allowable under section 38 as a deduction in the computation of the gain accruing to the company on the disposal of the asset in question, and
b
the market value of the asset.
3
In subsection (2) a “qualifying asset” means—
a
goodwill, or
b
an interest in land which is not held as trading stock.
4
But subsection (2) does not apply to the goodwill of the business if section 162C applies to it.
Words in Pt. 5 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(1)