Section 75B — Finance Act 2003: Anti-avoidance: incidental transactions

Anti-avoidance: incidental transactions 75B 1 In calculating the chargeable consideration on the notional transaction for the purposes of section 75A(5), consideration for a transaction shall be ignored if or in so far as the transaction is merely incidental to the transfer of the chargeable interest from V to P.

2 A transaction is not incidental to the transfer of the chargeable interest from V to P—

a if or in so far as it forms part of a process, or series of transactions, by which the transfer is effected, b if the transfer of the chargeable interest is conditional on the completion of the transaction, or c if it is of a kind specified in section 75A(3).

3 A transaction may, in particular, be incidental if or in so far as it is undertaken only for a purpose relating to—

a the construction of a building on property to which the chargeable interest relates, b the sale or supply of anything other than land, or c a loan to P secured by a mortgage, or any other provision of finance to enable P, or another person, to pay for part of a process, or series of transactions, by which the chargeable interest transfers from V to P.

4 In subsection (3)—

a paragraph (a) is subject to subsection (2)(a) to (c),

b paragraph (b) is subject to subsection (2)(a) and (c),

and c paragraph (c) is subject to subsection (2)(a) to (c).

5 The exclusion required by subsection (1) shall be effected by way of just and reasonable apportionment if necessary.

6 In this section a reference to the transfer of a chargeable interest from V to P includes a reference to a disposal by V of an interest acquired by P.