38. Transfers arising from certain mergers under Companies Act 2014
Chapter 1 of Part 20 of the Principal Act is amended by the insertion of the following section after section 617:
The transfer of all the assets and liabilities of a company which is a wholly owned subsidiary of another company (in this section referred to as the 'parent company') to the parent company as a consequence of a merger by absorption to which Chapter 3 of Part 9 of, or Chapter 16 of Part 17 of, the Companies Act 2014 applies shall not be treated as involving a disposal by the parent company of the share capital which it held in the subsidiary company immediately before the merger.".