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E1.1417 TiS (income tax)—positive filter—the general filter

These provisions apply for income tax purposes. For details of the corporation tax regime see ·¡1.1440–E1.1444.

The first filter brings into the scope of the legislation any person (referred to as 'the party') where¹:

1. Ìý

   •ÌýÌýÌýÌý the person is a party to a transaction in securities or two or more transactions in securities

2. Ìý

   •ÌýÌýÌýÌý the circumstances are covered by the specific technical filter (which broadly restricts the rules to transactions involving close companies, see E1.1418) and not excluded by the negative filter (see E1.1419)

3. Ìý

   •ÌýÌýÌýÌý the main purpose, or one of the main purposes, of the transaction in securities, is to obtain an income tax advantage, and

4. Ìý

   •ÌýÌýÌýÌý the party or any other person, obtains an income tax advantage in consequence of the transaction or the combined effect of the transactions

The definition of a tax advantage is at ITA 2007, s 687, which is discussed in more detail at 'The tax advantage' below.