Part 13Tax avoidance
C1C2Chapter 2Transfer of assets abroad
Pt. 13 Ch. 2 applied (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 21
Exemptions: no tax avoidance purpose or genuine commercial transaction
738Meaning of “commercial transaction”
1
For the purposes of section 737, a relevant transaction is a commercial transaction only if it meets the conditions in subsections (2) and (3).
2
It must be effected—
a
in the course of a trade or business and for its purposes, or
b
with a view to setting up and commencing a trade or business and for its purposes.
3
It must not—
a
be on terms other than those that would have been made between persons not connected with each other dealing at arm's length, or
b
be a transaction that would not have been entered into between such persons so dealing.
4
For the purposes of subsection (2), making investments, managing them or making and managing them is a trade or business only so far as—
a
the person by whom it is done, and
b
the person for whom it is done,
are persons not connected with each other and are dealing at arm's length.
Pt. 13 Ch. 2 applied by 1988 c. 1, s. 762ZA (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)