Section GB 1 — Income Tax Act 2007: Arrangements involving dividend stripping

GB 1 Arrangements involving dividend stripping When this section applies (1) This section applies when— (a) a person disposes of shares in a company in an income year; and (b) the disposal is part of a tax avoidance arrangement; and (c) some or all of the consideration that the person derives from the disposal is in substitution for a dividend in an income year. When amount substitutes for dividend (2) An amount derived by the person is in substitution for a dividend if it is equivalent to or substitutes for a dividend that, but for the arrangement, the person— (a) would have derived; or (b) would in all likelihood have derived; or (c) might be expected to have derived. Substitute treated as dividend (3) The amount derived in substitution for a dividend is treated as a dividend derived by the person in the income year in which the disposal occurs. Defined in this Act: arrangement , company , dispose , dividend , income year , tax avoidance arrangement , Compare: 2004 No 35 s GB 1(3)