Section 715 — Corporation Tax Act 2010: Meaning of “transaction entered into in connection with change in ownership”

Meaning of “transaction entered into in connection with change in ownership” 715 1 This section has effect for the purposes of section 714.

2 A transaction is entered into in connection with a change in the ownership of Y if—

a it is the transaction, or one of the transactions, by which the change is effected, or b it is entered into as part of a series of transactions, or scheme, of which transactions effecting the change have formed or will form part.

3 Any reference in this section to a scheme is to a scheme, arrangements or understanding of any kind.

4 It does not matter for the purposes of subsection (3)—

a whether the scheme, arrangements or understanding is legally enforceable, or b how many transactions are involved.

5 It does not matter, for the purpose of determining whether any transactions have formed or will form part of a series of transactions or scheme, that the parties to each of the transactions are not the same.

6 The cases in which any two or more transactions are to be taken as forming part of a series of transactions or scheme include a case in which it would be reasonable to assume that one or more of them—

a would not have been entered into independently of the other or others, or b if entered into independently of the other or others, would not have taken the same form or been on the same terms.