- Latest available (Revised)
- Original (As enacted)
Finance Act 2016, Section 33 is up to date with all changes known to be in force on or before 30 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(1)Chapter 1 of Part 13 of ITA 2007 (transactions in securities) is amended as follows.
(2)In section 684 (person liable to counteraction), in subsection (1)—
(a)in the opening words, after “a person” insert “ (“the party”) ”;
(b)in paragraph (c), omit “the person in being a party to”;
(c)in paragraph (d), for “the person” substitute “ the party or any other person ”.
(3)In that section, in subsection (2)—
(a)in paragraph (c), omit the final “and”;
(b)after paragraph (d) insert—
“(e)a repayment of share capital or share premium, and
(f)a distribution in respect of securities in a winding up.”
(4)In section 685 (receipt of consideration in connection with distribution by or assets of close company)—
(a)in subsection (2)—
(i)in the opening words, for “the person” substitute “ a relevant person ”;
(ii)in the words after paragraph (c), after “and” insert “ the relevant person ”;
(b)in subsection (3)—
(i)in paragraph (a), for “the person” substitute “ a relevant person ”;
(ii)in paragraph (c), for “the person” substitute “ the relevant person ”;
(c)after subsection (3) insert—
“(3A)In subsections (2) and (3) “relevant person” means—
(a)the party, or
(b)any person other than the party in relation to whom the condition in section 684(1)(d) is met.”
(d)omit subsection (6);
(e)after subsection (7) insert—
“(7A)The references in subsection (4)(a)(i) and (ii) to assets do not include assets shown to represent return of sums paid by subscribers on the issue of securities merely because the law of the country in which the company is incorporated allows assets of that description to be available for distribution by way of dividend.
(7B)The references in subsections (4)(a)(i) and (5)(a) to assets which are available for distribution by way of dividend by the company include assets which are available for distribution to the company by way of dividend by any other company it controls.”
(5)In section 686 (excluded circumstances: fundamental change of ownership)—
(a)in subsection (1)(a), for the words from “the person” to “party”)” substitute “ the party ”;
(b)for subsections (2) to (5) substitute—
“(2)There is a fundamental change of ownership of the close company if, as a result of the transaction or transactions in securities, the condition in subsection (3) is met.
(3)The condition in this subsection is that the original shareholder or original shareholders taken together with any associate or associates—
(a)do not directly or indirectly hold more than 25% of the ordinary share capital of the close company,
(b)do not directly or indirectly hold shares in the close company carrying an entitlement to more than 25% of the distributions which may be made by the close company, and
(c)do not directly or indirectly hold shares in the close company carrying more than 25% of the total voting rights in the close company.
(4)In this section “original shareholder” means a person who, immediately before the transaction in securities (or the first of the transactions in securities), held any ordinary share capital of the close company.
(5)For the purposes of this section, shares of or share capital in the close company which are held by a person controlled by an original shareholder, or by two or more original shareholders taken together, count as shares or share capital held by that original shareholder or those original shareholders.”
(6)In section 687 (income tax advantage)—
(a)in subsection (1), in the opening words, for “the person” substitute “ a person ”;
(b)in subsection (2)—
(i)after “to the person” insert “ or an associate of the person ”;
(ii)for “the relevant consideration is received” substitute “ Condition A or B in section 685 is met ”.
(7)In section 713 (interpretation), at the appropriate place insert—
““associate” is to be construed in accordance with section 681DL, but as if subsection (4) of that section also included, as persons associated with each other, a person as trustee of a settlement and an individual, where one or more beneficiaries of the settlement are connected or associated with the individual;”.
(8)The amendments made by this section have effect in relation to—
(a)a transaction occurring on or after 6 April 2016, or
(b)a series of transactions any one or more of which occurs on or after that date.
(9)Accordingly, Chapter 1 of Part 13 of ITA 2007 has effect without the amendments made by this section in relation to a tax advantage obtained on or after 6 April 2016 in consequence of—
(a)a transaction occurring before that date, or
(b)a series of transactions all of which occur before that date.
(10)Where—
(a)before 6 April 2016 a person provides particulars to the Commissioners for Her Majesty's Revenue and Customs under section 701 of ITA 2007 in respect of a transaction or transactions,
(b)on the basis of Chapter 1 of Part 13 of ITA 2007 as it has effect apart from this section, notification is given under section 701 of that Act that no counteraction notice ought to be served about the transaction or transactions,
(c)the transaction, or any one or more of the transactions, occurs on or after 6 April 2016, and
(d)the person would, but for the notification, be liable for counteraction of an income tax advantage from the transaction or transactions under Chapter 1 of Part 13 of ITA 2007 as amended by this section,
the notification is void and section 702(2) of ITA 2007 does not apply in relation to the transaction or transactions.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: