Readers’ forum: Transfer of non-UK subsidiaries to Gibraltar parent company

My query relates to a group whose ultimate parent is a Gibraltar-based company (GCo).

GCo owns a wholly owned UK subsidiary which in turn owns three wholly owned non-UK subsidiaries.

The three non-UK subsidiaries are all trading companies and have been for the last three years. The UK subsidiary wishes to transfer its three non-UK subsidiaries to GCo.

I have received conflicting advice on whether TCGA 1992 s 171 can be applied for the transfer. Some have advised both the transferor and the transferee would need to be UK resident and some say that only one of the parties is required to be a UK company.

The alternative solution offered was the use of the substantial shareholdings exemption relief where the three subsidiaries would be sold to GCo and the consideration on the sale would be eventually written off.

Readers’ comments would be greatly appreciated....