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Changing horses

02 September 2014 / Andrew Goodall
Issue: 4467 / Categories: Comment & Analysis , Business , Capital Gains , Companies

Key features of the incorporation and disincorporation reliefs in TCGA 1992


  • The principle behind both reliefs is that changes to business structure should not be inhibited by tax charges.
  • Incorporation relief is not lost if some business assets are not transferred.
  • It is possible for the incorporation relief to apply to partners in limited liability partnerships.
  • Disincorporation relief is time-limited for five years from April 2013.
  • For disincorporation relief to apply the qualifying conditions in TCGA 1992 s 59 must be met.

Capital gains tax incorporation relief “rollover relief on transfer of business” has been around for a long time. In contrast disincorporation relief was enacted only last year when the government estimated that around 610 000 companies about 40% of those in the UK would be eligible for relief against corporation...

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