Capital gains tax simplification for groups
The measure
It has been announced that a consultation document detailing proposals to simplify the capital gains regime for groups of companies will be published soon. This consultation document follows on from a discussion document that was issued in July 2009 in relation to this issue. The discussion document outlined a number of possible options for simplification in relation to capital loss buying rules, degrouping charges and the value shifting and depreciatory transactions provisions.
Who will be affected?
Groups of companies.
When?
No date has been given for the issue of the document in the press release. The July discussion document indicated that the Government expected to publish final proposals before the end of 2009.
A number of the options put forward in the discussion document should be beneficial to taxpayers if they are adopted in the final consultation document. In particular, the proposal to disapply degrouping charges where the disposal of the company in which the charge arises qualifies for the Substantial Shareholding Exemption would be welcome.
