Implications for companies in a gains group

The main implications of companies being grouped for capital gains purposes are:

  • transfers between group members are at no gain / no loss
  • degrouping charges may arise where there has been a previous no gain / no loss transfer and the transferee company leaves the group within six years
  • groups can elect for assets to be deemed to have been transferred on a no gain / no loss basis
  • rollover relief may be applied on a group wide basis

There are similar rules relating to intangible fixed assets. There are also exemptions from both Stamp Duty and Stamp Duty Land Tax for transfers between group companies. Both of these sets of rules include provisions to claw back relief in certain circumstances.

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