{"id":124,"date":"2025-12-03T11:03:40","date_gmt":"2025-12-03T11:03:40","guid":{"rendered":"https:\/\/ashfield-accountancy.co.uk\/?p=124"},"modified":"2025-12-03T11:03:40","modified_gmt":"2025-12-03T11:03:40","slug":"what-is-a-demerger","status":"publish","type":"post","link":"https:\/\/ashfield-accountancy.co.uk\/?p=124","title":{"rendered":"What is a demerger?"},"content":{"rendered":"<div>\n<p>A demerger involves splitting the trading activities of a single company or group into two or more independent entities. This can be facilitated\u00a0by distributing the assets of a holding company to its shareholders.<\/p>\n<p>There are special statutory demerger provisions that are designed to make it easier to divide and put into separate corporate ownership the trading activities of a company or group of companies. An exempt demerger will be deemed to occur under these provisions. As a result, the distribution is typically exempt from Income Tax and usually does not trigger any Capital Gains Tax, as the gains are effectively rolled over.<\/p>\n<p>The provisions do not apply where a trading activity is to be sold or becomes owned by a person other than the existing member of the original company.<\/p>\n<p>The provisions allow for the removal of the distribution charge in appropriate circumstances, making the distribution an &#8216;exempt distribution&#8217;. This applies to trading activities only. Companies that utilise the demerger provisions range from small private businesses to some of the largest public companies in the UK.<\/p>\n<p>The legislation also provides for a clearance procedure. Under this a company that wants to demerge trading activities can obtain advance confirmation from HMRC that the distribution that will arise will be an exempt distribution.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A demerger involves splitting the trading activities of a single company or group into two or more independent entities. This can be facilitated\u00a0by distributing the assets of a holding company to its shareholders. There are special statutory demerger provisions that are designed to make it easier to divide and put into separate corporate ownership the [&#8230;]\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-124","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=124"}],"version-history":[{"count":0,"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/124\/revisions"}],"wp:attachment":[{"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ashfield-accountancy.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}