Part 13 U.K.Tax avoidance

Chapter 1 U.K.Transactions in securities

[F1 Person liable to counteraction of income tax advantages U.K.

Textual Amendments

F1 Ss. 682-687 and cross-headings substituted (8.4.2010 with effect in accordance with Sch. 12 para. 15(1) of the amending Act) for s. 682-694 and cross-headings by Finance Act 2010 (c. 13), Sch. 12 para. 2

684 Person liable to counteraction of income tax advantage U.K.

(1) This section applies to a person [F2 (“the party”)] where—

(a) the person is a party to a transaction in securities or two or more transactions in securities (see subsection (2)),

(b) the circumstances are covered by section 685 and not excluded by section 686,

(c) the main purpose, or one of the main purposes, of F3 ... the transaction in securities, or any of the transactions in securities, is to obtain an income tax advantage, and

(d) [F4 the party or any other person] obtains an income tax advantage in consequence of the transaction or the combined effect of the transactions.

(2) In this Chapter “transaction in securities” means a transaction, of whatever description, relating to securities, and includes in particular—

(a) the purchase, sale or exchange of securities,

(b) issuing or securing the issue of new securities,

(c) applying or subscribing for new securities, F5 ...

(d) altering or securing the alteration of the rights attached to securities.

[F6 (e) a repayment of share capital or share premium, and

(f) a distribution in respect of securities in a winding up.]

(3) Section 687 defines “income tax advantage”.

[F7 (4) This section is subject to no-counteraction notices issued under section 698A.]]

Textual Amendments

F2 Words in s. 684(1) inserted (with effect in accordance with s. 33(8) of the amending Act) by Finance Act 2016 (c. 24), s. 33(2)(a) (with s. 33(9)(10))

F3 Words in s. 684(1)(c) omitted (with effect in accordance with s. 33(8) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 33(2)(b) (with s. 33(9)(10))

F4 Words in s. 684(1)(d) substituted (with effect in accordance with s. 33(8) of the amending Act) by Finance Act 2016 (c. 24), s. 33(2)(c) (with s. 33(9)(10))

F5 Word in s. 684(2)(c) omitted (with effect in accordance with s. 33(8) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 33(3)(a) (with s. 33(9)(10))

F6 S. 684(2)(e)(f) inserted (with effect in accordance with s. 33(8) of the amending Act) by Finance Act 2016 (c. 24), s. 33(3)(b) (with s. 33(9)(10))

F7 S. 684(4) substituted (with effect in accordance with s. 34(8)(9) of the amending Act) by Finance Act 2016 (c. 24), s. 34(7)

Modifications etc. (not altering text)

C1 S. 684 disapplied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 49