PART 3

Income tax and corporation tax

Transactions in UK land

Commencement and transitional provision: sections 78 and 79
82
1
The amendments made by sections 78 and 79 have effect in relation to disposals on or after 5 July 2016.
2
In subsection (1) of section 6A of ITA 2007 (tax avoidance arrangements in relation to section 6(1A) of that Act) “arrangement” does not include an arrangement (as defined in section 6A(7) of that Act) entered into before 16 March 2016.
3
In subsection (1) of section 517K of ITA 2007 (tax avoidance in relation to Part 9A of that Act) “arrangement” does not include an arrangement (as defined in section 517Q of that Act) entered into before 16 March 2016.
4
Subsection (6) applies if—
a
a person disposes of a relevant asset to a person who is associated with that person at the relevant time,
b
the disposal is made on or after 16 March 2016 and before 5 July 2016, and
c
a person obtains a relevant tax advantage as a result of the disposal.
5
In subsection (4) the reference to obtaining a relevant tax advantage includes obtaining a relevant tax advantage by virtue of any provisions of double taxation arrangements, but only in a case where the relevant tax advantage is contrary to the object and purpose of the provisions of the double taxation arrangements (and subsection (6) has effect accordingly, regardless of anything in section 6(1) of TIOPA 2010).
6
The tax advantage is to be counteracted by means of adjustments.
7
Adjustments for the purposes of subsection (6) may be made (whether by an officer of Revenue and Customs or by the person) by way of an assessment, the modification of an assessment, amendment or disallowance of a claim, or otherwise.
8
In subsection (4)(c) “relevant tax advantage” means a tax advantage in relation to tax to which the person in question is charged or chargeable (or would, if the tax advantage were not obtained, be charged or chargeable)—
a
by virtue of section 6(1A) of ITTOIA 2005, or
b
in respect of amounts treated as profits of a trade by virtue of Part 9A of ITA 2007.
9
For the purposes of this section, where any property is disposed of under a contract, the time at which the disposal is made is the time the contract is made (and not, if different, the time at which the property is conveyed or transferred).
10
In subsection (9) “contract” includes a conditional contract.
11
In this section—
- “arrangement” includes any scheme, agreement or understanding (whether or not legally enforceable);
- “disposal” is to be interpreted in accordance with section 517R of ITA2007;
- “relevant asset” means land, or property deriving the whole or part of its value from land;
- “tax advantage” has the same meaning as in section 6A of ITTOIA 2005.
12
For the purposes of this section a person (“A”) is “associated” with another person (“B”) if—
a
A is connected with B by virtue of any of subsections (2) to (4) of section 993 of ITA 2007 (read in accordance with section 994 of that Act), or
b
A is related to B.
13
In subsection (12) “related to” is to be interpreted in accordance with section 517U of ITA 2007.
14
In subsection (4), “the relevant time”—
a
in a case within subsection (8)(a), means the time when the disposal was made,
b
in a case within subsection (8)(b), means any time in the period beginning when the activities of the project began and ending 6 months after the disposal mentioned in section 517B(1) or 517D(1) of ITA 2007.
15
In subsection (14) “the project” means (as the case requires) the project described in section 517B(9) of ITA 2007 or the activities mentioned in section 517D(2)(a) of that Act.