The conditions referred to in CIRD42020 are as follows:

1 – The transfer should take place under a scheme of reconstruction (as defined in TCGA92/SCH5AA – see CG52707).

2 – The scheme of reconstruction is entered into for bona fide commercial reasons, and does not form part of a scheme or arrangements where the main (or one of the main) purposes is avoidance of liability to CT, CG tax or income tax.

3 – There should be no consideration received by the transferor, other than an assumption of all or part of the debts of the business by the transferee.

4 – The transfer should not be an intra-group transfer within CIRD40250.

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