These provisions apply for corporation tax purposes. For details of the income tax regime see ·¡1.1417–E1.1419.
Counteraction can only be taken where a tax advantage (see E1.1441) is obtained in one of the Circumstances described below. These fall into the following categories:
- Ìý
•ÌýÌýÌýÌý Circumstance C: receipt of consideration representing company's assets, future receipts or trading stock, see 'Circumstance C' below
- Ìý
•ÌýÌýÌýÌý Circumstance D: extraction of funds from a company, see 'Circumstance D' below, or
- Ìý
•ÌýÌýÌýÌý Circumstance E: consideration on the form of company shares or securities, see 'Circumstance E' below
If there is an appeal against counteraction, the onus is on HMRC to show that one of these circumstances is present and that the tax advantage arises in consequence of the transactions concerned1.
Circumstance C
Circumstance C applies where a person (A) receives, in a form not taxable as income, consideration which:
- Ìý
•ÌýÌýÌýÌý is or represents assets of a company available for distribution by way of dividend (or would be available apart from anything done
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