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E1.1440 TiS (corporation tax)—qualifying conditions

These provisions apply for corporation tax purposes. For details of the income tax regime see ·¡1.1417–E1.1419.

A person is liable to counteraction by HMRC under these provisions if three conditions are satisfied¹:

1. Ìý

   •ÌýÌýÌýÌý a person must be in a position to obtain, or must have obtained, a tax advantage (see E1.1417)

2. Ìý

   •ÌýÌýÌýÌý the tax advantage must be obtained or obtainable by that person in consequence of one or more transactions in securities or in consequence of the combined effect of the transaction or transactions (see E1.1442)

3. Ìý

   •ÌýÌýÌýÌý one of the prescribed circumstances must be present (see E1.1443)

Even where all three conditions are satisfied, HMRC may not take counteraction if the taxpayer can show that the transaction or transactions were carried out either²:

1. Ìý

   •ÌýÌýÌýÌý for genuine commercial reasons, or

2. Ìý

   •ÌýÌýÌýÌý in the ordinary course of making or managing investments,

and in either case that none of the transactions had as their main object or one