This note considers the rules under the Companies Act 2006, that have applied since 1 October 2009, that prohibit a public company from giving financial assistance for the purpose of the acquisition of its shares or those of a parent company, and a private company from giving financial assistance for the purpose of the acquisition of shares of a public parent company. For details of the pre-1 October 2009 position under the Companies Act 1985, see Practice note, Financial assistance: pre-1 October 2009.
NOTE: This resource is being reviewed in light of the July 2015 Budget. For more information, see Legal update, July 2015 Budget: key business tax announcements. This practice note explains the VAT consequences of property sales by a mortgagee following a default by the mortgagor in an insolvency.