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Chapter SDLTM23084

Document Cited in Related
Vincent
Published date19 March 2016
Record NumberSDLTM23084
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
Group Takeover

Where this is a sale of an entire group and this occurred within three years of the transaction, a withdrawl of group relief will be triggered as there has been a change in control of the purchasing company.

Paragraph 4(4) of Schedule 7 FA 2003

Paragraph 4(4) of Schedule 7 of Finance Act 2003 provides that group relief is not withdrawn where the purchaser ceases to be a member of the same group as the vendor because of anything done for the purposes of, or in the course of ,winding up the vendor or another company that is above the vendor in the group structure.

A company is above the vendor in the group structure if the vendor (or another company above the vendor in the group structure) is a 75% subsidiary of the company.

This provision has not altered following the introduction of paragraph 4ZA.

However, HMRC is aware of concern that the commencement of a winding up of an intermediate holding company within a group would result in the breaking up of a group.

This is because the appointment of a...

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