MTT44020 | Particular entities and adjustments: Restructures: Transfer of controlling interest treated as acquisition of assets and liabilities

In some cases, the acquisition or disposal of a controlling interest in a member is to be treated as an acquisition or disposal of the assets and liabilities of the member, in accordance with section 209 of Finance (No.2) Act 2023.

Where the treatment applies, any gain or loss made in relation to the transfer is treated as a gain or loss on the disposal of the assets or liabilities of the member, and is to be included in the adjusted profits of that member.

The guidance in MTT44010 will not apply to the member in this case.

This treatment applies where:

Any such amount of covered tax should be included in the covered tax balance of the member being disposed of.