Commentary on Sections Overview Chapter 9: Application of this Part to groups of companies Section 787: Company ceasing to be member of group because of exempt distribution
2094.This section disapplies the degrouping rules in sections 780 and 785 for certain demergers unless there is a “chargeable payment” to members within five years of the related “exempt distribution”. It is based on paragraph 61 of Schedule 29 to FA 2002.
2095.Subsection (5) gives a signpost to the meaning of terms that are part of the general demergers tax rules.