Section 1077 — Corporation Tax Act 2010: Transfer by distributing company and issue of shares by transferee company

Transfer by distributing company and issue of shares by transferee company 1077 1 This section applies to a distribution which consists of both of the following—

a the transfer by a company to one or more other companies (“the transferee company or companies”) of—

i a trade or trades, or ii shares in one or more companies which are 75% subsidiaries of the company making the transfer, and b the issue of shares by the transferee company or companies to all or any of the members of the company making the transfer.

2 A distribution to which this section applies is an exempt distribution if—

a each of conditions A to D in section 1081 and each of conditions G to K in section 1083 is met in respect of the distribution, and b if the company making the transfer is a 75% subsidiary of another company, conditions L and M in section 1085 are met in respect of the distribution.