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.