Introduction Details of the Section
2.Subsection (1) provides that a qualifying business transfer is one where conditions A to E are met.
3.Subsection (2) provides that condition A is that the business must be transferred as a going concern.
4.Subsection (3) provides that condition B is that the business must be transferred with all of the assets of the business, or all assets apart from cash.
5.Subsection (4) provides that condition C is that the total market value of the assets that qualify for disincorporation relief must not exceed £100,000.
6.Subsection (5) provides that condition D is that all the shareholders to whom the business is transferred must be individuals.
7.Subsection (6) provides that condition E is that the shareholders must have held shares in the company throughout the 12 months prior to the business transfer date.
8.Subsection (7) confirms that the reference to individuals in condition D includes individuals acting as members of a partnership but excludes individuals acting as members of a limited liability partnership.
9.Subsection (8) provides that section 60 of TCGA 1992 applies for the purpose of disincorporation relief, so that the qualifying assets could be transferred to a nominee or bare trustee for individuals who are shareholders or the shares could be held by a nominee or bare trustee for an individual.
10.Subsection (9) defines the market value of an asset as its price if sold on the open market.
11.Subsection (10) defines qualifying asset as goodwill or an interest in land other than land held as trading stock.