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Income Tax (Trading and Other Income) Act 2005

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Changes over time for: Section 397AA

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Version Superseded: 15/09/2016

Alternative versions:

Status:

Point in time view as at 21/07/2009. This version of this provision has been superseded. Help about Status

Changes to legislation:

There are currently no known outstanding effects for the Income Tax (Trading and Other Income) Act 2005, Section 397AA. Help about Changes to Legislation

[F1397AATax credit under section 397A: conditionsU.K.
This section has no associated Explanatory Notes

(1)Section 397A(1) only applies if condition A, B or C is met.

(2)Condition A is that—

(a)the relevant distribution is made by a company with issued share capital, and

(b)at the time the person receives the relevant distribution, the person is a minority shareholder in the company.

(3)Condition B is that the company that makes the relevant distribution is an offshore fund.

(4)Condition C is that—

(a)the company that makes the relevant distribution is a resident of (and only of) a qualifying territory at the time that the relevant distribution is received, and

(b)if the relevant distribution is one of a series of distributions made as part of a scheme—

(i)each company that makes a distribution in the series (a “scheme distribution”) is a resident of (and only of) a qualifying territory at the time that the scheme distribution is received, or

(ii)the scheme is not a tax advantage scheme.

(5)In this section—

  • minority shareholder”, in relation to a company, has the meaning given in section 397C;

  • offshore fund” has the same meaning as in Chapter 5 of Part 17 of ICTA (see sections 756A to 756C of that Act);

  • qualifying territory” has the meaning given by or under section 397BA;

  • relevant distribution” has the same meaning as in section 397A;

  • scheme” includes any scheme, arrangements or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;

  • tax advantage scheme” means a scheme that, ignoring any incidental purposes, has as its only purpose or purposes either or both of the following—

    (a)

    to enable a person to obtain a tax credit under section 397A, and

    (b)

    to enable a person to obtain (in any territory) any other relief from tax on a distribution.]

Textual Amendments

F1S. 397AA inserted (with effect in accordance with Sch. 19 para. 14 of the amending Act) by Finance Act 2009 (c. 10), Sch. 19 para. 3

Modifications etc. (not altering text)

C1S. 397AA modified (with effect in accordance with reg. 1 of the amending S.I.) by The Tax Credits (Excluded Companies) Regulations 2009 (S.I. 2009/3333), reg. 2

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