Part 23Company distributions
Chapter 5Demergers
Exempt distributions
1077Transfer by distributing company and issue of shares by transferee company
1
This section applies to a distribution which consists of both of the following—
a
the transfer by a company to one or more other companies (“the transferee company or companies”) of—
i
a trade or trades, or
ii
shares in one or more companies which are 75% subsidiaries of the company making the transfer, and
b
the issue of shares by the transferee company or companies to all or any of the members of the company making the transfer.
2
A distribution to which this section applies is an exempt distribution if—
a
each of conditions A to D in section 1081 and each of conditions G to K in section 1083 is met in respect of the distribution, and
b
if the company making the transfer is a 75% subsidiary of another company, conditions L and M in section 1085 are met in respect of the distribution.