Corporation Tax Act 2010 section 1079

"The distributing company"

Section 1079 defines which company is treated as the "distributing company" for the purposes of the demerger rules, depending on which type of exempt distribution is involved.

• The identity of the "distributing company" varies depending on the type of demerger distribution taking place.
• Where a parent company transfers shares in a subsidiary directly to its members (section 1076), the parent making the share transfer is the distributing company.
• Where a company transfers a trade or business to another company, which then issues shares to the transferor's members (section 1077), the company making the transfer is the distributing company.
• Where a company transfers part of its business as a cross-border transfer (section 1078), the company making that partial business transfer is the distributing company.