Corporation Tax Act 2009

629 Tax avoidance U.K.

(1) Section 625 does not apply if conditions A and B are met.

(2) Condition A is that the transferor is a party to arrangements in accordance with which there is likely to be a transfer of rights or liabilities under the derivative contract by the transferee to another person in circumstances in which section 625 would not apply.

(3) Condition B is that the purpose or one of the main purposes of the arrangements is to secure a tax advantage for the transferor or a person connected with it.

(4) Section 625 does not apply in relation to a disposal if section 698 (disposals for consideration not fully recognised by accounting practice) applies in relation to the disposal.

(5) In this section—

• “arrangements” includes any scheme, agreement, understanding, transaction or series of transactions,

• “tax advantage” has the meaning given by [F1 section 1139 of CTA 2010],

• “transfer” includes any arrangement which equates in substance to a transfer (including any acquisition or disposal of, or increase or decrease in, a share of the profits or assets of a firm), and

• “the transferor” and “the transferee” have the same meaning as in section 625.

Textual Amendments

F1 Words in s. 629(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 639 (with Sch. 2)