Taxes Consolidation Act 1997 section 753E

Anti-avoidance

Section 753E sets out anti-avoidance provisions applying to qualifying financial transactions under the stock borrowing and repurchase agreement rules.

• The Chapter only applies to transactions undertaken for bona fide commercial reasons that do not form part of a tax avoidance scheme.
• During a transaction period, the capital, voting rights and entitlement to assets of each party must be assessed by reference to both the pre-transaction and mid-transaction positions.
• The percentage holding attributed to each party for the transaction period is the amount that does not give rise to a tax advantage for that party or a connected person.
• "Tax advantage" broadly covers any reduction, avoidance or deferral of tax, or the creation or increase of a refund, achieved through a tax avoidance arrangement.