Assets transfer to non-resident company: reorganisations of share capital etc

Part of Finance (No. 2) Bill – in a Public Bill Committee am 2:15 pm ar 11 Ionawr 2018.

Danfonwch hysbysiad imi am ddadleuon fel hyn

With this it will be convenient to discuss new clause 11—Review of financial impact of postponement of charge on share exchange in overseas transferee company—

‘(1) Within twelve months after the passing of this Act, the Chancellor of the Exchequer must review the financial impact of the changes made by section 27 of this Act to section 140 TCGA.

(2) The review under this section must consider—

(a) the revenue effects of the change made, and

(b) the extent to which the change has supported UK companies to conduct international business.

(3) The Chancellor of the Exchequer must lay before the House of Commons the report of the review under this section as soon as practicable after its completion.”

This new clause provides for a review of the revenue impact and the impact on business of the change to TCGA to prevent a postponed chargeable gain from becoming chargeable following further restructuring of a UK Company’s overseas business.