Corporation Tax Act 2009 section 782A

Company leaving group because of relevant share disposal

Section 782A provides an exception to the intangible assets degrouping charge where a company leaves a group as a result of a qualifying share disposal that meets the conditions for the Substantial Shareholding Exemption.

• The normal degrouping charge under section 780 does not apply when a company leaves a group because of a relevant disposal of shares by another company
• A share disposal is "relevant" if it would qualify for the Substantial Shareholding Exemption under paragraph 1 of Schedule 7AC to TCGA 1992, meaning the shares must be in a trading company or the holding company of a trading group
• The disposal is not relevant if it forms part of an arrangement under which the buyer will pass any of the shares on to another person
• This exception also extends to degrouping charges that arise under section 785 when a principal company becomes a member of another group