Part 13Tax avoidance
Chapter 1Transactions in securities
Circumstances in which income tax advantages obtained or obtainable
687Deductions from profits obtained following distribution or dealings (circumstance B)
1
This section applies in relation to a person if subsections (2) to (4) apply.
2
The person becomes entitled—
a
in respect of securities held or sold by the person, or
b
in respect of securities formerly held by the person,
to a deduction in calculating profits or gains.
3
The entitlement arises in connection with—
a
the purchase of securities where the purchase is followed by the sale of the same or other securities,
b
the sale of securities where the sale is followed by the purchase of the same or other securities,
c
the distribution, transfer or realisation of assets of a company, or
d
the application of such assets in discharge of liabilities.
4
The entitlement arises because of a fall in the value of the securities resulting from—
a
the payment of a dividend on them, or
b
any other dealing with any assets of a company.
5
Subsection (2)(b) applies whether or not the person has sold the securities.