(1) Transfer duty or
vehicle registration duty is not imposed on a transfer, or agreement for the
transfer, of dutiable property carried out for a corporate reconstruction if
the conditions in subsection (2) are complied with.
Note—
See section 404(How part applies to particular transactions).
(2) For subsection (1) , the
conditions are as follows—
(a) the transferor did not hold, and the
transferee will not hold, the property as trustee;
(b) the transferor and
transferee of the property are group companies;
(c) the dutiable transaction
has not been made under an arrangement under which—
(i) part or all of the
consideration for the dutiable transaction has or is to be provided or
received, directly or indirectly by a person other than a group company; or
(ii) a group company is to be enabled to provide any of the consideration by a
person other than as mentioned in subsection (3) ; or
(iii) a group company
is to dispose of any of the consideration through a payment or other
disposition—
(A) to a person other than a group company; or
(B) to a person
other than by way of loan on ordinary commercial terms;
(d) the property
transferred is, at the time of the transfer, group property under section 407.
(3) For subsection (2) (c) (ii) , consideration may be provided—
(a) by a
financial institution by way of loan on ordinary commercial terms; or
(b) by
a group company; or
(c) under an offer and sale of shares to the public in
the circumstances mentioned in section 412(4) (b) .
