Corporation Tax Act 2010

733 Company liable to counteraction of corporation tax advantage

(1) This section applies to a company in respect of a transaction in securities or two or more such transactions if the company is in a position to obtain or has obtained a corporation tax advantage—

(a) in circumstances where any of the provisions specified in subsection (2) applies in relation to the company, and

(b) in consequence of—

(i) the transaction, or

(ii) the combined effect of the transactions.

(2) The provisions are—

• section 735 (abnormal dividends used for exemptions or reliefs (circumstance A)),

• section 736 (receipt of consideration representing company’s assets, future receipts or trading stock (circumstance C)),

• section 737 (receipt of consideration in connection with relevant company distribution (circumstance D)), and

• section 738 (receipt of assets of relevant company (circumstance E)).

(3) For the purposes of this Part a corporation tax advantage is treated as obtained or obtainable by a company in consequence of—

(a) a transaction in securities, or

(b) the combined effect of two or more such transactions,

if it is obtained or obtainable by the company in consequence of the combined effect of the transaction or transactions and the liquidation of a company.

(4) This section is subject to—

• section 734 (exception where no tax avoidance object shown),

• section 744(3) (disapplication of this section where company receiving preliminary notification that this section may apply makes a statutory declaration and the relevant officer of Revenue and Customs sees no reason to take further action), and

• section 745(5) (determination by tribunal that there is no prima facie case that this section applies).