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The taxpayer inquired whether the segregation of its pig farming activity into a new company could qualify for the special partial demerger regime. The DGT ruled that, as the real estate assets were not transferred and the assets appeared to be isolated elements lacking a prior autonomous organisation, the requirement of a business undertaking was not met.
Companies attempting to use demerger tax benefits must ensure that the assets being transferred form a cohesive, autonomous business unit rather than a mere collection of individual assets.
The tax team reviews your specific situation.
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