There is a wealth of case law on the TiS provisions. The legislation has been rewritten in a more targeted fashion since the majority of these cases were decided, but as many of the definitions and parts of the current TiS provisions are identical to the old rules, or very similar to them, the interpretation as it evolved through case law is still, arguably, very relevant today.
Interaction with capital gains tax
As discussed at E1.1450, the HMRC view is that if a transaction in securities falls within the relevant conditions, counteraction can be taken to charge income tax, even if the way in which the transaction is carried out would normally give rise to capital gains tax (or, in the case of a company, to charge corporation tax at the rate applicable to income (for periods where there was a different rate for chargeable gains)).
For example, in Universities Superannuation Scheme Ltd1 the 'normal' transaction was a sale of a minority holding in a property development company. Instead, the shares
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Web page updated on 17 Mar 2025 17:16