Income Tax (Trading and Other Income) Act 2005 Explanatory Notes

Section 449: Strips of government securities: manipulation of acquisition, sale or redemption payments

1811.This section applies where there is a scheme or arrangement and the main, or one of the main, benefits that is expected to accrue is the obtaining of a tax advantage. It substitutes market value in any case where the acquisition cost is more than the market value, or the disposal or redemption proceeds are less than market value. The section is based on paragraph 14B of Schedule 13 to FA 1996.

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