Section 687: Deductions from profits obtained following distribution or dealings (circumstance B)
2046.This section is based on sections 704 B(1) and 709(3)of ICTA.
2047.Subsection (1) requires that three conditions set out in subsections (2) to (4) must be satisfied if section 687 is to apply to a person.
2048.Subsection (2) provides that the person must become entitled to a deduction in calculating profits or gains in respect of securities.
2049.Subsection (3) prescribes what the person’s entitlement must arise in connection with. See also the commentary on section 686(3).
2050.This section does not rewrite section 704 B(2), which is corporation tax specific.