Part 7Miscellaneous

Other miscellaneous measures

110Mergers Directive: regulations

1

The Treasury may by regulations make provision about—

a

the tax consequences of a merger to form an SE or SCE,

b

the tax consequences of a merger where—

i

each party to the merger is resident in a member State, and

ii

the parties are not all resident in the same member State,

c

the tax consequences of a transfer between companies of a business or part of a business, where—

i

each party to the transfer is resident in a member State, and

ii

the parties are not all resident in the same member State,

d

the tax consequences of a share exchange to which section 135 of TCGA 1992 (exchange of securities) applies where companies A and B are resident in different member States,

e

the residence of an SE or SCE.

2

Regulations may, in particular, make provision—

a

about the taxation of chargeable gains (including conferring relief from taxation in relation to transfers or mergers which satisfy specified conditions),

b

conferring relief from taxation on a distribution of a company which satisfies specified conditions,

c

about the treatment of securities issued on a transfer or merger,

d

about the treatment of loan relationships,

e

about the treatment of derivative contracts,

f

about the treatment of intangible fixed assets, and

g

about capital allowances.

3

Regulations may make provision only if the Treasury think it necessary or expedient for the purposes of complying with the United Kingdom's obligations under the Mergers Directive.

4

In this section—

  • the Mergers Directive” means Council Directive 90/434/EEC,

  • SCE” means an SCE formed in accordance with Council Regulation (EC) 1435/2003 on the Statute for a European Cooperative Society, and

  • SE” means an SE formed in accordance with Council Regulation (EC) 2157/2001 on the Statute for a European Company.

5

Regulations under this section may—

a

amend the Taxes Acts,

b

make incidental or consequential amendments of enactments other than the Taxes Acts,

c

make provision having retrospective effect,

d

make provision generally or only for specified cases or circumstances,

e

make different provision for different cases or circumstances,

f

make incidental, consequential or transitional provision.

6

In this section “the Taxes Acts” has the meaning given by section 118(1) of TMA 1970.