Specific provisions1 have been introduced to deal with the transfer of intangible assets on certain cross-border mergers.
The equivalent provisions on a merger involving the transfer of loan relationships and derivative contracts are at D1.769, D1.8103 respectively. The capital gains treatment and further consequential amendments are at D6.530–D6.532.
Intangible assets remaining in UK and EU merger
Where intangible assets, that are chargeable intangible assets in the hands of the transferor immediately before the transfer and also in the hands of the transferee immediately after the transfer, are transferred in the course of a genuine commercial merger2, the transfer of such assets is to be done on a tax-neutral basis for UK purposes3. A chargeable intangible asset is broadly one within the computational rules of the corporate intangible regime.
This means that the transferor and transferee must either be UK resident companies or trading in the UK through a permanent establishment and the intangible fixed asset is attributable to the activities of that permanent establishment.
This provision will not apply
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Web page updated on 17 Mar 2025 17:41