When the anti-avoidance rule applies

Where an investor, together with persons connected with him, holds five per cent or more of the shares or debentures of the target company, the no disposal/no acquisition rule (see ¶560-000) only applies if the transaction:

•is effected for bona fide commercial reasons; and

•does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to capital gains tax or corporation tax

(TCGA 1992, s. 137(1)–(3); for connected persons, see ¶503-800).

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.

Talk to us on live chat
Call an Expert: 0800 231 5199