CTM17270 | Distributions: demergers: action required in offices
From HM Revenue & Customs · Company Taxation Manual
If you receive:
a clearance application in connection with a demerger, under , or
a clearance application in respect of a potential chargeable payment following a demerger, under , or
a return under , and guidance has not yet been provided by the Clearance and Counteraction Team, Business, Assets and International the following procedure applies.
Clearance application for proposed demerger -
The Clearance and Counteraction Team deals with all applications for clearance under .
All clearance applications received elsewhere in HMRC should be forwarded immediately to Clearance and Counteraction Team at [email protected]
You should advise the agent or company that you have done so in the following terms:
“I refer to the application for clearance you sent me. All such applications must be made to the Clearance and Counteraction Team. Your application has been forwarded. The team may be contacted by email at [email protected] or by writing to
BAI Clearance
HMRC
BX9 1JL
The team have thirty days to reply.’’
If appropriate refer the applicant to the Annex to SP13/80 (available on the HMRC website).
It is not possible to make a demerger clearance application under retrospectively.
If a company carries out a demerger without obtaining advance clearance, the tax implications of the transactions are dealt with on normal lines. Relief under may or may not be due, depending on the circumstances.
Officers should refer such cases to the Clearance and Counteraction Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) for advice concerning the possible application of with a brief summary of the transactions.
Officers might receive joint or similar applications for clearance under this or other provisions. Other provisions include:
(capital reconstruction - see ), (capital reconstruction involving transfer of business - see ), and (transactions in securities - see ), and (purchase of own shares - see ).
If there is more than one application officers should forward them all to the Clearance and Counteraction Team.
Clearance application in respect of a potential chargeable payment following a demerger
Officers should deal with a chargeable payment clearance application in the same way as for a demerger clearance but without enclosing a copy of SP13/80. Officers should immediately forward the application to the Clearance and Counteraction Team at [email protected].
Returns
HMRC Clearance and Counteraction Team maintain a list of clearances given and refused. See . Where officers receive a return under (exempt distribution) or (chargeable payment) they should check with the Clearance and Counteraction Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to ask whether clearance has been given. If clearance has not been sought or has been refused officers should send the return immediately to the Clearance and Counteraction Team together with a copy of any accompanying correspondence.