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A sports club which was incorporated as a company limited by guarantee wishes to liquidate and transfer all assets and liabilities to newly formed members sports club. Does the transfer of fixed assets constitute a disposal for CGT purposes or as both bodies are charitable and exempt from CT or IT (mutual trading) can the transfer be exempt? No benefit is given to shareholders other than those who may become members of new club.

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Posted by (Questions: 6, Answers: 1)
Asked on 4 December 2018 4:01 pm
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It is a disposal and I can't see why any chargeable gain resulting from appreciation of the assets would not be subject to CGT. Would it be possible to set up a HoldCo and carry out a merger by absorption?
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Posted by (Questions: 5, Answers: 5010)
Answered on 26 December 2018 12:59 pm