Corporation Tax Act 2009 section 770

Continuity where group includes an SE

Section 770 preserves the identity of a group for intangible fixed assets purposes when the principal company of the group becomes involved in the formation of a European Company (Societas Europaea or SE).

• Where the principal company of a group becomes an SE through merger by acquisition, becomes a subsidiary of a holding SE, or is transformed into an SE, group continuity is preserved.
• The original group and any group of which the SE is a member on formation are treated as the same group.
• Whether a company has ceased to be a member of a group must be determined on that basis of continued group identity.
• This rule removes uncertainty about the tax treatment of intangible fixed assets when corporate restructurings involve the creation of a European Company.