Part 17Manufactured payments and repos

Chapter 4Further provision about manufactured payments

Manufactured payments under arrangements with unallowable purpose

801Sections 799 and 800: supplementary

1

For the purposes of sections 799 and 800 and this section—

a

“arrangements” includes schemes, arrangements and understandings (whether or not they are legally enforceable), and

b

“manufactured payment” means—

i

any manufactured dividend,

ii

any manufactured interest (as defined in section 539(5) of CTA 2009),

iii

any manufactured overseas dividend, and

iv

any payment which, as a result of section 796(3) or 797(3), constitutes a fee.

2

For the purposes of section 800, one or more transactions are treated as related transactions, in the case of any arrangements, if it would be reasonable to assume, from—

a

the likely effect of the transactions,

b

the circumstances in which the transactions are entered into or effected, or

c

both that effect and those circumstances,

that none of the transactions would have been entered into or effected independently of the arrangements.

3

Transactions may be related transactions, in the case of any arrangements, even if the transactions—

a

are not between the same parties, or

b

are not between the parties to the arrangements.