CTM36835 - Particular topics: transactions in securities: Corporation Tax advantage
CTA10/PART15, S731 to S751, sets out the legislation that provides for counteracting Corporation Tax advantages obtained or obtainable by companies in respect of a transaction or transactions in securities.
Corporation Tax advantage means
- a relief from Corporation Tax, or increased relief from Corporation Tax,
- a repayment of Corporation Tax or increased repayment of Corporation Tax,
- the avoidance or reduction of a charge to Corporation Tax or an assessment to Corporation Tax, or
- the avoidance of a possible assessment to Corporation Tax.
The provision applies in respect of a transaction or transactions in securities if the company is in a position to obtain or has obtained a Corporation Tax advantage in circumstances where the avoidance of tax is effected
- by receipts accrued in such a way that the recipient does not pay or bear Corporation Tax on them
- by a deduction in calculating profits or gains.
The provisions to be applied are
- CTA10/S736 바카라 사이트“ receipt of consideration representing company assets, future receipts or trading stock (바카라 사이트˜circumstance C바카라 사이트™)
- CTA10/S737 바카라 사이트“ receipt of consideration in connection with relevant company distribution (바카라 사이트˜circumstance D바카라 사이트™)
- CTA10/S738 바카라 사이트“ receipt of assets of relevant company (바카라 사이트˜circumstance E바카라 사이트™).
CTA10/S733 does not apply to a company in respect of a transaction in securities if the company shows that the transaction or transactions meet conditions A and B.
Condition A 바카라 사이트“ the transaction is or the transactions are effected for genuine commercial reasons or in the ordinary course of making and managing investments.
Condition B 바카라 사이트“ the main object or one of the main objects of the transaction or transactions is not enabling a Corporation Tax advantage or corporation tax advantages to be obtained.
For Corporation Tax purposes, clearance notification is given under CTA10/S748.