Capital gains tax consultation for groups
A new consultation paper aimed at simplifying the legislation on capital gains tax for groups of companies has been published. The legislation in this area has become bloated partly due to anti-avoidance provisions and the inherent complexity of calculating capital gains. However, the Treasury is confident that it is possible to simplify the capital gains tax rules for groups of companies.
The proposals in the consultation document relate mainly to simplifying the following three areas:
- Capital losses following a change in ownership
- Value shifting and depreciatory transactions
- Degrouping charges
The consultation paper includes draft legislation, relating to the three areas above, to simplify the relevant rules and to reduce the administrative burden on groups of companies.
The consultation period closes on 17 May 2010. Interested parties can send responses and enquiries by post to:
The Related Companies Simplification Review Team
1 Horse Guards Road
London, SW1A 2HQ
Or by email to firstname.lastname@example.org