Section GB 5 — Income Tax Act 2007: Arrangements involving trust beneficiaries

GB 5 Arrangements involving trust beneficiaries When this section applies (1) This section applies when— (a) a share in a company or option over a share in a company is held by a trustee; and (b) a change occurs in the beneficiaries of the trust; and (c) a purpose or effect of the change is to defeat the intent and application of a continuity provision. Trustee treated as disposing of share or option (2) The trustee is treated as having disposed of the share or option to an unrelated person at the time of the change in beneficiaries, and as having reacquired it immediately afterwards. Limited application of subsection (2) (3) Subsection (2) applies only for the purposes of the application of the rules in sections YC 2 (Voting interests) and YC 3 (Market value interests) in the case of the continuity provisions. Defined in this Act: company , continuity provisions , dispose , option , share , trustee , Compare: 2004 No 35 s GC 3