(1)This section applies to a person in respect of a transaction in securities or two or more such transactions if the person is in a position to obtain or has obtained an income tax advantage—
(a)in circumstances where any of the provisions specified in subsection (2) applies in relation to the person, and
(b)in consequence of—
(i)the transaction, or
(ii)the combined effect of the transactions.
(2)The provisions are—
section 686 (abnormal dividends used for exemptions or reliefs (circumstance A)),
section 687 (deductions from profits obtained following distribution or dealings (circumstance B)),
section 688 (receipt of consideration representing company’s assets, future receipts or trading stock (circumstance C)),
section 689 (receipt of consideration in connection with relevant company distribution (circumstance D)), and
section 690 (receipt of assets of relevant company (circumstance E)).
(3)For the purposes of this Chapter an income tax advantage is treated as obtained or obtainable by a person in consequence of—
(a)a transaction in securities, or
(b)the combined effect of two or more such transactions,
if it is obtained or obtainable by the person in consequence of the combined effect of the transaction or transactions and the liquidation of a company.
(4)This section is subject to—
section 685 (exception where no tax avoidance object shown),
section 696(3) (disapplication of this section where person receiving preliminary notification that this section may apply makes a statutory declaration and the relevant officer of Revenue and Customs sees no reason to take further action), and
section 697(5) (determination by tribunal that there is no prima facie case that this section applies).