Section 684 — Income Tax Act 2007: Person liable to counteraction of income tax advantage

Person liable to counteraction of income tax advantage 684 1 This section applies to a person (“the party”) where—

a the person is a party to a transaction in securities or two or more transactions in securities (see subsection (2)),

b the circumstances are covered by section 685 and not excluded by section 686, c the main purpose, or one of the main purposes, of ... the transaction in securities, or any of the transactions in securities, is to obtain an income tax advantage, and d the party or any other person obtains an income tax advantage in consequence of the transaction or the combined effect of the transactions.

2 In this Chapter “ transaction in securities ” means a transaction, of whatever description, relating to securities, and includes in particular—

a the purchase, sale or exchange of securities, b issuing or securing the issue of new securities, c applying or subscribing for new securities, ... d altering or securing the alteration of the rights attached to securities. e a repayment of share capital or share premium, and f a distribution in respect of securities in a winding up.

3 Section 687 defines “income tax advantage”.

4 This section is subject to no-counteraction notices issued under section 698A.