One of the popular areas in the Advanced Tax exam is CGT (capital gains tax) groups.

For CGT groups, the direct shareholding has to be 75% but the indirect shareholding only has to be 51%.

Only UK resident companies can be included in the group, but the holding company can be an overseas company.

It is important to remember that a company can only be in a single CGT group.

There are 3 tax benefits of being in a CGT group.

•  Assets like buildings can be transferred to group members at nil gain/nil loss. The actual sale proceeds are ignored for tax purposes.  
• Use the group election to give a capital gain / capital loss to a group company. This must be done within 2 years from the end of the accounting period in which the disposal took place. Giving a capital gain to another group company can enable higher group relief. It is also possible to give part of the gain to one group company and part of the gain to another group member.
• Group rollover relief enables the gain on business assets to be postponed if one group company sells an asset (usually a building) and another group member reinvests the sale proceeds in a replacement business asset ( buildings or fixed plant and machinery ).
• If you are planning on doing  Advanced Tax in June 2024, I recommend you purchase Advanced Tax Condensed which will allow you to learn the technical rules very quickly using accelerated learning techniques. If you then practice the key questions I recommend, you too will be ready for anything the examiner throws at you.
•  The book will really make the difference. You can purchase it using the link below:
• https://neildacosta.co.uk/advanced-tax-condensed/
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