The three conditions which must be met under Sch. 7, para. 7(1) are as follows:

First condition: Issue of non-redeemable shares

The consideration for the acquisition must consist wholly or partly of the issue of non-redeemable shares in the acquiring company to all the shareholders of the target company, and must include nothing else but the assumption or discharge by the acquiring company of liabilities of the target company.

Legislation: FA 2003, Sch. 7, para. 7(2), (3)

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