HMRC has indicated, in correspondence with the CIOT, a change of view on the availability of incorporation relief where a ‘mixed partnership’, i.e. one including both individuals and a corporate member, incorporates the partnership business into the existing corporate member. With effect from 30 April 2016, HMRC’s revised view is that the relief in TCGA 1992 s 162 cannot apply, as such a transfer to an existing partner will not involve ‘the whole assets of the business’.
The CIOT has requested that HMRC considers a specific statutory relief for such mixed membership transfers. See www.bit.ly/1SNKRtR.
HMRC has indicated, in correspondence with the CIOT, a change of view on the availability of incorporation relief where a ‘mixed partnership’, i.e. one including both individuals and a corporate member, incorporates the partnership business into the existing corporate member. With effect from 30 April 2016, HMRC’s revised view is that the relief in TCGA 1992 s 162 cannot apply, as such a transfer to an existing partner will not involve ‘the whole assets of the business’.
The CIOT has requested that HMRC considers a specific statutory relief for such mixed membership transfers. See www.bit.ly/1SNKRtR.
