[F1[F2554ACMeaning of “excluded transaction”U.K.
(1)In section 554AB “excluded transaction” means—
(a)a distribution made by B,
(b)a transaction that—
(i)is entered into by B in the ordinary course of B's business, and
(ii)is on terms that would have been made between persons not connected with each other dealing at arm's length, or
(c)a transaction entered into in order to facilitate the disposal, on terms that would have been made between persons not connected with each other dealing at arm's length, of shares in B.
(2)But the distribution or transaction is not an “excluded transaction” if the avoidance of tax is the main purpose, or one of the main purposes, of (as the case may be)—
(a)making the distribution, or
(b)the transaction.
(3)Part 23 of CTA 2010 has effect for determining the meaning of “distribution” in this section as if—
(a)section 1000(1) of CTA 2010 included a paragraph specifying any distribution made in a winding up of the company, and
(b)sections 1030 to 1030B of that Act were omitted.]]
Textual Amendments
F1Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1
F2Ss. 554AA-554AF and cross-heading inserted (with effect in accordance with Sch. 1 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 1 para. 2