Autumn Statement 2014 update – loop hole closed

In December 2014 we published the following blog – click here

This information has now changed and below is an update:

Following the announcement by the Chancellor in his Autumn Statement 2014 of the government’s intention to put an end to the practice of avoiding stamp tax charges on UK company takeovers by structuring them as ‘cancellation’ schemes of arrangement, regulations closing the loophole came into force on 4 March 2015. The Companies Act 2006 (Amendment of Part 17) Regulations 2015 amends section 641 of the Companies Act 2006 to prohibit companies from reducing their share capital as part of a reduction scheme to effect a takeover. The exception is where the acquisition is simply for the purposes of a restructuring and inserts a new holding company. This prohibition applies to all takeovers where the offer is announced on or after 4 March 2015.

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