Section 1077 | Transfer by distributing company and issue of shares by transferee company

(1)This section applies to a distribution which consists of both of the following—

(a)the transfer by a company to one or more other companies (“the transferee company or companies”) of—

(i)a trade or trades, or

(ii)shares in one or more companies which are 75% subsidiaries of the company making the transfer, and

(b)the issue of shares by the transferee company or companies to all or any of the members of the company making the transfer.

(2)A distribution to which this section applies is an exempt distribution if—

(a)each of conditions A to D in section 1081 and each of conditions G to K in section 1083 is met in respect of the distribution, and

(b)if the company making the transfer is a 75% subsidiary of another company, conditions L and M in section 1085 are met in respect of the distribution.