Family Trading Companies

Partition of Family Trading Companies

Tax Briefing issue 44 explains the relief available in the case of a partition of a family trading company together with the circumstances in which the relief may be granted. Essentially the article outlines how precedent 701^* is to be applied, particularly the conditions which must be satisfied and the specific method to be adopted to achieve partition. Revenue will nevertheless accept that where partition is achieved by means of a capital reduction resolved and passed at an extraordinary general meeting and confirmed by the High Court pursuant to Section 72 Companies Act 1963, precedent 701 may have application. For relief to be granted, all other conditions, as outlined in Tax Briefing issue 44, must be satisfied.