ERSM100190 - University Spin-outs
Tax avoidance
Per ITEPA03/S451 (2), Chapter 4A will not apply if:
- the avoidance of tax or NICs is one of the
main purposes of the arrangements under which the right or
opportunity to acquire shares is made available, or
- something has been done at or before the
date of the IP transfer agreement or any actual transfer which
affects the shares as part of a scheme or arrangement to avoid tax
or NICs.
Interaction with Chapter 3B
ITEPA03/S455 specifically states that, for the purposes of
Chapter 3B (securities with artificially enhanced market value)
neither the intellectual property agreement nor any transfer of
intellectual property pursuant to it are things done otherwise than
for genuine commercial purposes.
