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Home / Simons-Taxes /Corporate tax /Part D6 Company reconstruction and profit extraction /Division D6.5 International reorganisations /Takeovers and mergers—international aspects / D6.531 Merger to form SE/SCE etc—assets left within the UK tax charge
Commentary

D6.531 Merger to form SE/SCE etc—assets left within the UK tax charge

Corporate tax

Where the merger leaves assets within the UK tax charge and certain conditions are met, qualifying transferred assets are treated for the purposes of corporation tax on chargeable gains as if acquired by the transferee for a consideration resulting in neither gain nor loss for the transferor1. Such assets transferred do also not trigger a degrouping charge (D2.331).

From IP completion day (11pm on 31 December 2020), every SE that is registered in the United Kingdom immediately before that day is automatically converted into a 'UK Societas'. From IP completion day, no new SEs or SCEs can be formed in the UK2.

The equivalent provisions on a merger involving the transfer of intangible assets, loan relationships and derivative contracts are at D1.664, D1.769 and D1.8103 respectively.

Scope of provisions where assets left within the UK tax charge

The relief only applies if:

  1. Ìý

    (a)ÌýÌýÌýÌý The merger is for bona fide commercial reasons, and does not form part of a scheme or arrangements of which

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