699Limit on amount assessed in section 689 and 690 casesU.K.
(1)This section applies if a counteraction notice is served in a case where the income tax advantage—
(a)consists of the avoidance of a charge to income tax, and
(b)is obtained by a person in circumstances falling within—
section 689 (receipt of consideration in connection with relevant company distribution (circumstance D)), or
section 690 (receipt of assets of relevant company (circumstance E)).
(2)The amount of income tax which may be specified in an assessment made in accordance with the notice must not exceed the qualifying distribution equivalent.
(3)The qualifying distribution equivalent is the amount of income tax for which the person would be liable if—
(a)the person received a qualifying distribution on the date on which the consideration mentioned in section 689 or, as the case may be, section 690 is received, and
(b)that distribution were of an amount equal to the amount or value of that consideration.