The degrouping charge: mergers: handling
Mergers within Section 181 typically arise in joint ventures between large groups. Where there is genuine uncertainty as to whether the rule will apply to a proposed merger then a non-statutory clearance may be sought.
An non-statutory clearnce application in relation to Section 181 may be -
- enclosed with any application for statutory clearance made to HMRC’s Clearance & Counteraction Team in connection with the same transactions,
- sent to the group’s Customer Relationship Manager, where appointed, or
- sent to the non-statutory clearance team in Southend.
All such applications should be referred to Capital Gains Technical Group for advice.
Where there is an associated statutory clearance then the decision of the Clearance & Counteraction Team on that matter will also apply for Section 181 in respect of the commercial reasons and purpose of the proposed transactions (S181(1)(b)).