STSM042470 - Exemptions and reliefs: reliefs: Section 77A – Arrangements that are not disqualifying arrangements

Section 77A(3) FA1986 provides that share for share exchanges referenced in s.77(3) FA1986 and relevant merger arrangements (see STSM042500) are not disqualifying arrangements.

However, s.77A(5) FA1986 states that where share for share exchanges or “relevant merger arrangements” are part of a wider scheme or arrangement and that scheme or arrangement includes other arrangements which are not share for share exchanges or “relevant merger arrangements”, those other arrangements are disqualifying arrangements.

“Arrangements” includes any agreement, understanding or scheme (whether or not legally enforceable).

“Control” is to be read in accordance with section 1124 CTA2010.

STSM042460 provides information on what are “disqualifying arrangements”.

STSM042475 and STSM042480 provide examples of arrangements that are, and are not, disqualifying arrangements