Revenue Note for Guidance
This Chapter concerns mergers and divisions undertaken in accordance with Companies Act 2014.
The Companies Act 2014 provides for the transfer of assets and liabilities of a “transferor company” to a “successor company” pursuant to a merger or division. At the same time as the assets and liabilities of the transferor company transfer to one or more successor companies, the transferor company dissolves without going into liquidation. While the transferor company ceases to exist from the point of transfer, the successor company steps into the shoes of the transferor company as regards certain rights and obligations of the transferor company. This section provides that certain rights and obligations of the transferor company including tax payment, filing and reporting obligations and liabilities, will transfer to the successor company or companies. It also provides that an appeal made by a transferor company may be treated as an appeal made by a successor company and that any right of appeal in relation to an appealable matter conferred on a transferor company be treated as conferred on the successor company
(1) The term “division” means a division undertaken in accordance with the Companies Act 2014.
The term “merger” means a merger undertaken in accordance with the Companies Act 2014.
The term “successor company” means a company to which assets and liabilities have been transferred as a result of a merger or division.
The term “the Acts” means:
The term “transferor company” means a company from which assets and liabilities have been transferred as a result of a merger or division.
(2) All liabilities, obligations and requirements or things to be fulfilled or done by a transferor company, will, for the purposes of Part 38 (returns of income and gains, other obligations and returns, and revenue powers), Part 41A (assessing rules including rules for self assessment), Part 42 (collection and recovery) and Part 47 (penalties, revenue offences, interest on overdue tax and other sanctions) of the Taxes Consolidation Act, transfer to a successor company or companies following a merger or division undertaken in accordance with the Companies Act 2014.
(3) An appeal made by a transferor company shall be treated as an appeal made by the successor company.
(4) Any right of appeal in relation to an appealable matter conferred on a transferor company shall be treated as conferred on the successor company.
Relevant Date: Finance Act 2021