HMRC have shared a helpful new statutory clearance checklist with the Chartered Institute of Taxation (CIOT) which sets out in some detail all the information that HMRC require to consider a clearance application.

The checklist applies to Share-for-share exchanges, such as when Creating a group, Demergers, Company purchase of own shares and other transactions involving Transactions in Securities, Reorganisations and Reconstructions. It will shortly also be available on GOV.UK.

Currently, the HMRC guidance in this area is spread across various manuals and help sheets. The new checklist provides a more detailed insight in a single document, into exactly what information HMRC require to consider and approve statutory clearance applications.

Useful guides on this topic

An Index to Reorganisations, Demergers & Share transactions
You can reorganise or separate company activities and different subsidiaries using a variety of different methods. The super-practical tax guides in this index provide an outline of the tax treatment together with step guides and tax clearance templates.

Reorganisations and Reconstructions
What is a company reorganisation or reconstruction? What tax reliefs apply to a company reorganisation or a share for share exchange or a reconstruction?

Demergers: What are your options?
What are the different types of demergers that are available when you want to reorganise your business? What are the situations where they are typically used?

Management Buyout: What are your options?
What are the simplest options for a management buyout? E.g. Two current director/shareholders wish to retire and sell to the manager. 

Purchase (repurchase) of own shares
How can a company repurchase its share capital? What are the Companies Act requirements? What are the tax consequences for the company and shareholder?

Purchase of own shares: Checklist (Masterclass)
A Checklist (Masterclass) for dealing with a Company Purchase of Own Shares.

Exit strategies: What are your options? 
What are the available exit routes for a company owner who wishes to sell up and move on?

Transactions in Securities: Case studies
This guide contains case studies for the Transactions in Securities (TiS) rules. 

Stamp duty: Share for share exchanges
How to you calculate stamp duty on a share for share exchange? What relief is available from stamp duty on a share for share exchange? 

 

External link

CIOT: What to include in Statutory Clearance applications – HMRC checklist 


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