Following consultation, the existing value-shifting provisions are being replaced with a purpose-based rule for companies disposing of shares or securities. The intention is that groups should still be able to avoid double taxation on disposals for which the substantial shareholdings exemption is not available through paying up pre-sale dividends, but the scope of the exemption for pre-sale dividends in the legislation is unclear and taxpayers are being asked to place a large amount of reliance on HMRC guidance.
