DAC Beachcroft Corporate Adviser Alert: New Regulations 2015 will prohibit takeover-related cancellation schemes of arrangement
Published 28 January 2015
In the 2014 Autumn Statement delivered on 3 December 2014, the Chancellor of the Exchequer announced the Government's plans to amend section 641 of the Companies Act 2006 to prohibit cancellation schemes of arrangement in connection with company takeovers, and to close the associated stamp duty loophole which was having an adverse effect on Government revenues.
The draft Companies Act 2006 (Amendment of Part 17) Regulations 2015, which would effect this change, were published and laid before Parliament for approval on 12 January 2015, and an amended version published on 16 January. The Government intends the draft Regulations to come into force as soon as possible.