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In force since 2026-09-16, as the publisher states.
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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
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(1) This section applies if under the new lease the lessor, or L or a person linked to L, has power to end the lease before the end of the term for which it was granted. (2) The term of the lease must be treated as ending on the earliest date with effect from which the lessor, or L or a person linked to L, could end the lease by exercising the power.
Propose a change(1) This section applies if under the new lease L, or a person linked to L, has power to vary, in a manner beneficial to L or a person linked to L, obligations under the lease that are obligations of L or a person linked to L. (2) The term of the lease must be treated as ending on the earliest date with effect from which L, or a person linked to L, could vary the obligations by exercising the power.
Propose a change(1) Subsection (2) applies if a rentcharge payable by L, or a person linked to L, is secured on all or part of the property subject to the new lease. (2) For the purposes of sections 681BF to 681BH the rent payable under the new lease must be treated as equal to the sum of the rentcharge and the rent payable under the lease.
Propose a change(1) This section applies if each of conditions A to D is met. (2) Condition A is that— (a) a person (“the lessee”) is a lessee of land under a lease which has 50 years or less to run (“the original lease”), and (b) the lessee is entitled in respect of the rent under the original lease to a deduction by way of relevant income tax relief. (3) Condition B is that (by agreement with the landlord) the lessee varies the original lease. (4) Condition C is that under the variation— (a) the lessee agrees to pay a rent greater than that payable under the original lease, and (b) the lessee agrees to pay the greater rent in return for a consideration which would not (apart from this Chapter) be taxable except as capital in the lessee's hands. (5) Condition D is that under the variation the period during which the greater rent is to be paid ends 15 years or less after the date on which— (a) the consideration is paid to the lessee, or (b) the last instalment of the consideration is paid to the lessee (if it is paid in instalments). (6) If this section applies the lessee must be treated for the purposes of this Chapter— (a) as having surrendered the original lease for the consideration mentioned in subsection (4)(b), and (b) as having been granted a new lease for a term of 15 years or less but otherwise on the terms of the original lease varied as mentioned in subsection (3).
Propose a changeFor the purposes of this Chapter each of the following is a deduction by way of relevant income tax relief— (a) a deduction in calculating profits or losses of a trade, profession or vocation for income tax purposes, (b) a deduction in calculating the profits of a UK property business for income tax purposes, (c) a deduction in calculating any loss for which relief is given under section 152 (losses from miscellaneous transactions), or in calculating profits or other income or gains chargeable to income tax under or by virtue of any provision to which section 1016 applies, and (d) a deduction from earnings allowed under section 336 of ITEPA 2003 (expenses) or allowed in calculating losses in an employment for income tax purposes.
Propose a change(1) In this Chapter references to a person linked to L are to a person who is— (a) a partner of L, (b) an associate of L, or (c) an associate of a partner of L. (2) “Associate” must be read in accordance with section 681DL (relatives, settlements, persons controlling bodies, joint owners etc).
Propose a change(1) This section applies for the purposes of this Chapter. (2) “Lease” includes— (a) an agreement for a lease, and (b) any tenancy. (3) “Lease” does not include a mortgage. (4) A reference to a lessee or lessor— (a) is to be read in accordance with subsections (2) and (3), and (b) includes a reference to the successors in title of a lessee or lessor. (5) “Rent” includes a payment by a tenant for work to maintain or repair leased premises which the lease does not require the tenant to carry out; and “premises” here includes land. (6) In the application of this section to Scotland “mortgage” means— (a) a standard security, or (b) a heritable security, as defined in the Conveyancing (Scotland) Act 1924, but including a security constituted by ex facie absolute disposition or assignation.
Propose a changeThis Chapter provides that, in certain circumstances where a payment is made under a lease of a trading asset, income tax relief for the payment is restricted.
Propose a changeIn this Chapter a reference to a trade includes a reference to a profession or vocation.
Propose a change(1) Section 681CC has effect if— (a) condition A is met, and (b) condition B or C is met. (2) Condition A is that— (a) a payment is made by a person under a lease of a relevant asset, and (b) a deduction is allowed for the payment in calculating the profits of a trade for income tax purposes. (3) Condition B is that— (a) at a time before the lease's creation the asset was used for the purposes of the trade, and (b) when it was so used it was owned by the person then carrying on the trade. (4) Condition C is that— (a) at a time before the lease's creation the asset was used for the purposes of another trade, (b) when it was so used it was owned by the person then carrying on the other trade, and (c) when it was so used, or later, that person was carrying on the trade mentioned in subsection (2). (5) The reference in subsection (2)(a) to a lease does not include a lease created on or before 14 April 1964. (6) In this section references to a person carrying on a trade are to the person carrying on the trade for the time being.
Propose a change(1) The rules in subsection (3) apply to the calculation of the deduction by way of relevant income tax relief allowed in a relevant period— (a) for the non-excluded element of the payment within section 681CB(2), or (b) if there are two or more such payments, for the non-excluded elements of those payments. (2) For the purposes of this section— (a) “relevant period” means— (i) a period of account of the trade, or (ii) if no accounts of the trade are drawn up for a period, ... a tax year, and (b) the non-excluded element of a payment is the element of the payment not excluded under section 681CD (long funding finance leases). (3) The rules are— Rule 1 —meaning of amount E For any relevant period, amount E (which may be nil) is the expense or total expenses to be brought, in accordance with generally accepted accounting practice, into account in the period in respect of— the non-excluded element of the payment, or the non-excluded elements of the payments. Rule 2 — calculations For every relevant period— calculate the total of amount E for the period and amount E for every previous relevant period ending on or after the date of the creation of the lease mentioned in section 681CB(2)(a), calculate the total of the deductions by way of relevant income tax relief for every previous relevant period ending on or after that date, and subtract the total at (b) from the total at (a) to give the cumulative unrelieved expenses for the period. Rule 3 — meaning of post-spread period A relevant period is a post-spread period if for that relevant period, and every later relevant period, there are no payments within section 681CB(2). Rule 4 — the deduction allowed in a relevant period If a relevant period is not a post-spread period, the deduction allowed for the period is equal to the cumulative unrelieved expenses for the period, but is the commercial rent for the period if that is less (see section 681CE). Rule 5— relevant periods in which no deduction allowed If a relevant period is a post-spread period, no deduction is allowed for the period.
Propose a change(1) This section applies for the purposes of section 681CC. (2) A payment must be excluded so far as, in the case of the lessee, it is to be regarded in accordance with Chapter 6A of Part 2 of CAA 2001 as a payment under a lease which is a long funding finance lease for the purposes of that Part.
Propose a change(1) Subsection (3) applies for the purpose of making a comparison under rule 4 of section 681CC(3). (2) In this section “the actual lease” means the lease mentioned in section 681CB(2)(a). (3) The commercial rent is the rent which might at the relevant time be expected to be paid under a lease of the asset if— (a) the lease were for the rest of the asset's expected normal working life, (b) the rent were payable at uniform intervals and at a uniform rate, and (c) the rent gave a reasonable return for the asset's market value at the relevant time, taking account of the actual lease's terms and conditions. (4) The relevant time is the time when the actual lease was created. (5) An asset's expected normal working life is the period which might be expected, when it is first put into use, to pass before it is finally put out of use as being unfit for further use. (6) In applying subsection (5) it must be assumed that the asset will be used in the normal way, and to the normal extent, throughout the period. (7) If the asset is used at the same time partly for the purposes of the trade mentioned in section 681CB(2)(b) and partly for other purposes, the commercial rent as defined in subsection (3) is to be determined by reference to what would be paid for such partial use.
Propose a change(1) This section applies for the purposes of this Chapter. (2) A lease is (in relation to an asset) an agreement or arrangement under which payments are made for the use of or otherwise in respect of the asset. (3) In particular it includes an agreement or arrangement under which the payments (or any of them) represent instalments of a purchase price or payments towards it.
Propose a changeFor the purposes of this Chapter a relevant asset is any description of property or rights other than land or an interest in land.
Propose a changeThis Chapter provides that in certain circumstances where a payment is made under a lease of an asset, and a capital sum is obtained in respect of an interest in the asset, income tax is charged on an amount not greater than the capital sum.
Propose a changeThis Chapter applies if— (a) condition A is met (see section 681DB), and (b) condition B, C, D or E is met (see section 681DC).
Propose a change(1) Condition A is that— (a) a payment is made under a lease of a relevant asset, and (b) the payment is one for which a deduction by way of relevant tax relief is allowed. (2) Condition A is not met if section 681CC (leased trading assets: tax deductions)— (a) applies to the payment, or (b) would apply to it but for its being excluded under section 681CD (long funding finance leases). (3) Condition A is not met if section 865 of CTA 2010 (provision for corporation tax corresponding to section 681CC)— (a) applies to the payment, or (b) would apply to it but for its being excluded under section 866 of that Act (long funding finance leases). (4) The reference in subsection (1)(a) to a lease does not include a lease created on or before 14 April 1964.
Propose a change(1) Condition B is that the person making the payment— (a) obtains a capital sum in respect of the lessee's interest in the lease, and (b) is within the charge to income tax. (2) Condition C is that an associate of the person making the payment— (a) obtains a capital sum by way of consideration in respect of the lessee's interest in the lease, and (b) is within the charge to income tax. (3) Condition D is that— (a) the lessor's interest in the lease, or any other interest in the asset, belongs to an associate of the person making the payment, (b) the associate obtains a capital sum in respect of the interest, and (c) the associate is within the charge to income tax. (4) Condition E is that— (a) the lessor's interest in the lease, or any other interest in the asset, belongs to an associate of the person making the payment, (b) an associate of that associate obtains a capital sum by way of consideration in respect of the interest, and (c) the associate obtaining the sum is within the charge to income tax. (5) Condition B, C, D or E may be met before, at or after the time when the payment is made. (6) Condition B or C is not met if— (a) the lease is a hire-purchase agreement for plant or machinery, and (b) the capital sum is required to be brought into account as the whole or part of the disposal value of the plant or machinery under section 68 of CAA 2001. (7) Condition D or E is not met if— (a) the capital sum is obtained in respect of the lessee's interest in the lease, (b) the lease is a hire-purchase agreement for plant or machinery, and (c) the capital sum is required to be brought into account as the whole or part of the disposal value of the plant or machinery under section 68 of CAA 2001.
Propose a change(1) The person obtaining the capital sum is charged to income tax, for the tax year in which the sum is obtained, on the amount given by subsection (2). (2) That amount is— (a) the amount of the payment for which a deduction by way of relevant tax relief is allowed, or (b) the total amount of such payments (if more than one). (3) But subsections (1) and (2) have effect subject to— (a) subsections (4) to (7), and (b) section 681DE(3) (hire-purchase agreements). (4) The amount on which tax is charged under this section is not to exceed the capital sum obtained (but see section 681DE(4)). (5) Subsection (6) applies if— (a) income tax is charged under this section in respect of a capital sum, and (b) a payment or part of a payment is taken into account in deciding the amount on which the tax is charged. (6) The payment or part must be left out of account in deciding— (a) whether income tax is to be charged under this section in respect of another capital sum, and (b) the amount on which the tax is to be charged (if any is to be charged). (7) The order in which subsections (5) and (6) are applied is the order in which capital sums are obtained. (8) An amount on which income tax is charged under this section is treated for income tax purposes as an amount of income.
Propose a change(1) This section applies if— (a) the lease is a hire-purchase agreement (as defined in section 998A), and (b) the capital sum is obtained in respect of the lessee's interest in the lease (whether it is obtained by the person making the payment or by an associate). (2) Find the total of the following amounts— (a) so much of any payment made under the lease by the person obtaining the capital sum as is not a payment for which a deduction by way of relevant tax relief is allowed, and (b) if the lessee's interest was assigned to the person obtaining the capital sum, any capital payment made by that person as consideration for the assignment. (3) If the total of the amounts found under subsection (2) is equal to or greater than the capital sum, income tax is not charged under section 681DD in respect of the capital sum. (4) If the total of those amounts is less than the capital sum, in applying section 681DD(4) that total must be deducted from the capital sum. (5) If the capital sum is the consideration for part only of the lessee's interest in the lease— (a) any amount found under subsection (2) (and still unallowed) must be reduced to a just and reasonable proportion of it, and (b) in calculating that proportion account must be taken of the degree to which the payments mentioned in subsection (2) have contributed to the value of what is disposed of in return for the capital sum. (6) Subsection (7) applies if— (a) more than one capital sum is (or is treated as) obtained by the same person in respect of the lessee's interest in the lease, and (b) in arriving at a total under subsection (2) a payment is taken into account in respect of one of the capital sums. (7) So far as the payment is so taken into account it must not be taken into account in applying subsection (2) to another of the capital sums. (8) The order in which subsections (6) and (7) are applied is the order in which capital sums are obtained. (9) If the capital sum is obtained by the personal representatives of a deceased person, the reference in subsection (2)(a) to any payment made under the lease by the person obtaining the capital sum includes any payment made under the lease by the deceased.
Propose a change(1) This section applies if a capital sum is obtained as mentioned in section 681DC and later a payment is made as mentioned in section 681DB. (2) Adjustments must be made if they are needed to give effect to a charge to income tax under section 681DD in respect of the capital sum. (3) An adjustment may be made within the period ending with the fifth anniversary of the 31 January following the tax year in which the payment is made. (4) Subsection (3) applies despite any time limit specified in the Income Tax Acts.
Propose a changeA reference in this Chapter to a sum obtained in respect of an interest in an asset (whether the lessee's interest in a lease of the asset or the lessor's interest or any other interest) includes a reference to— (a) insurance money obtained in respect of the interest, and (b) sums representing money or money's worth obtained in respect of the interest by a transaction or series of transactions disposing of it.
Propose a change(1) This section applies to a reference in this Chapter to a sum obtained in respect of the lessee's interest in a lease of an asset. (2) The reference includes a reference to sums representing the consideration in money or money's worth obtained on any of the following occasions— (a) a surrender of the interest to the lessor, (b) an assignment of the lease, and (c) the creation of a sublease or another interest out of the lease. (3) The reference also includes a reference to sums representing money or money's worth obtained in respect of the interest by a transaction or series of transactions under which the lessee's rights are merged in any way with the lessor's rights or with any other rights as respects the asset. (4) Subsection (3) applies so far as the money or money's worth is attributable to the lessee's rights under the lease.
Propose a change(1) This section applies for the purposes of this Chapter if a person disposes of an interest in an asset to a person who is the first person's associate (and the interest may be the lessee's interest in a lease of the asset or the lessor's interest or any other interest). (2) The person disposing of the interest must be treated as obtaining in respect of it the greatest of— (a) the sum in fact obtained by the person, (b) the value of the interest in the open market, and (c) the value of the interest to the person to whom it is in effect transferred. (3) The disposal— (a) may be direct or indirect, and (b) may be effected by a transaction or series of transactions described in section 681DG(b) or 681DH(3).
Propose a change(1) This section applies for the purposes of this Chapter. (2) Subsection (3) applies if— (a) a payment is made, (b) it is one for which a deduction by way of relevant tax relief is allowed, and (c) it is made by persons carrying on a trade or profession in partnership. (3) The payment must be apportioned in a manner which is just and reasonable. (4) Subsection (5) applies if— (a) a sum is obtained in respect of an interest in an asset, (b) the sum is obtained by persons carrying on a trade or profession in partnership, and (c) the asset is and continues to be used for the purposes of the trade or profession. (5) The sum must be apportioned between the partners in the shares in which they are entitled to the profits of the trade or profession at the time the sum is obtained. (6) Subsection (7) applies if— (a) a sum is obtained in respect of an interest in an asset, and (b) the sum is obtained by persons jointly entitled to the interest. (7) The sum must be apportioned according to their respective rights in the interest. (8) Subsections (6) and (7) are subject to subsections (4) and (5).
Propose a change(1) Subsections (2) and (3) apply if— (a) a payment or sum is to be apportioned under section 681DJ or under section 880 of CTA 2010, (b) at the time of the apportionment it appears that it is material to the liability to tax (whether income tax or corporation tax, and for whatever period) of two or more persons (in this section referred to collectively as “the set”), (c) a question arises as to the manner in which the payment or sum is to be apportioned, and (d) at the time of the apportionment, it appears that the apportionment is material to the income tax liability (for whatever period) of— (i) a person, or some two or more persons, in the set, or (ii) all the persons in the set. (2) For the purposes of income tax of the person or persons mentioned in subsection (1)(d), the question is to be determined in the same way as an appeal. (3) All the persons in the set are entitled to be a party to the proceedings.
Propose a change(1) This section applies for the purposes of this Chapter. (2) Persons are associates if they are associated with each other. (3) The following are associated with each other— (a) an individual and the individual's spouse or civil partner or relative, (b) an individual and a spouse or civil partner of a relative of the individual, (c) an individual and a relative of the individual's spouse or civil partner, (d) an individual and a spouse or civil partner of a relative of the individual's spouse or civil partner. (4) The following are associated with each other— (a) a person as trustee of a settlement and an individual who (in relation to the settlement) is a settlor, (b) a person as trustee of a settlement and a person associated with an individual who (in relation to the settlement) is a settlor. (5) The following are associated with each other— (a) a person and a body of persons of which the person has control, (b) a person and a body of persons of which persons associated with the person have control, (c) a person and a body of persons of which the person and persons associated with the person have control, (d) two or more bodies of persons associated with the same person under paragraphs (a) to (c). (6) In relation to a disposal by joint owners, the joint owners and any person associated with any of them are associated with each other. (7) For the purposes of this section— (a) a relative is a brother, sister, ancestor or lineal descendant, (b) a body of persons includes a partnership, and (c) “settlement” and “settlor” have the meanings given by section 620 of ITTOIA 2005.
Propose a changeFor the purposes of this Chapter a capital sum is any sum of money, or any money's worth, except so far as it or any part of it— (a) is to be treated for income tax purposes as a receipt to be taken into account in calculating the profits or losses of a trade, profession or vocation, or (b) is (apart from this Chapter) chargeable to income tax under or by virtue of any provision to which section 1016 applies.
Propose a change(1) This section applies for the purposes of this Chapter. (2) A lease is (in relation to an asset) an agreement or arrangement under which payments are made for the use of or otherwise in respect of the asset. (3) In particular it includes an agreement or arrangement under which the payments (or any of them) represent instalments of a purchase price or payments towards it.
Propose a changeFor the purposes of this Chapter a relevant asset is any description of property or rights other than land or an interest in land.
Propose a changeFor the purposes of this Chapter each of the following is a deduction by way of relevant tax relief— (a) a deduction in calculating profits or losses of a trade for corporation tax purposes, (b) a deduction in calculating any loss for which relief is given under section 91 of CTA 2010 (losses from miscellaneous transactions), or in calculating profits or gains chargeable to corporation tax under or by virtue of any provision to which section 1173 of CTA 2010 applies (miscellaneous charges), (c) a deduction of an amount which for the purposes of section 73 of FA 2012 is adjusted BLAGAB management expenses of an insurance company for an accounting period, (d) a deduction under section 1219 of CTA 2009 (expenses of management of a company's investment business), (e) a deduction in calculating profits or losses of a trade, profession or vocation for income tax purposes, (f) a deduction in calculating any loss for which relief is allowed under section 152 (losses from miscellaneous transactions), or in calculating profits or other income or gains chargeable to income tax under or by virtue of any provision to which section 1016 applies, and (g) a deduction from earnings allowed under section 336 of ITEPA 2003 (expenses) or allowed in calculating losses in an employment for income tax purposes.
Propose a changeThis Chapter makes provision for counteracting income tax advantages from transactions in securities.
Propose a change(1) Sections 684 to 687 specify when a person is liable to counteraction of income tax advantages from transactions in securities. (2) Sections 695 to 700 make provision about the procedure for counteraction of such income tax advantages. (3) Sections 701 and 702 make provision for a clearance procedure. (4) Section 705 makes provision for appeals against counteraction notices. (5) Sections 712 deals with cases in which a person liable to counteraction dies. (6) Section 713 contains interpretative provisions.
Propose a change(1) This section applies to a person (“the party”) where— (a) the person is a party to a transaction in securities or two or more transactions in securities (see subsection (2)), (b) the circumstances are covered by section 685 and not excluded by section 686, (c) the main purpose, or one of the main purposes, of ... the transaction in securities, or any of the transactions in securities, is to obtain an income tax advantage, and (d) the party or any other person obtains an income tax advantage in consequence of the transaction or the combined effect of the transactions. (2) In this Chapter “transaction in securities” means a transaction, of whatever description, relating to securities, and includes in particular— (a) the purchase, sale or exchange of securities, (b) issuing or securing the issue of new securities, (c) applying or subscribing for new securities, ... (d) altering or securing the alteration of the rights attached to securities. (e) a repayment of share capital or share premium, and (f) a distribution in respect of securities in a winding up. (3) Section 687 defines “income tax advantage”. (4) This section is subject to no-counteraction notices issued under section 698A.
Propose a change(1) The circumstances covered by this section are circumstances where condition A or condition B is met. (2) Condition A is that, as a result of the transaction in securities or any one or more of the transactions in securities, a relevant person receives relevant consideration in connection with— (a) the distribution, transfer or realisation of assets of a close company, (b) the application of assets of a close company in discharge of liabilities, or (c) the direct or indirect transfer of assets of one close company to another close company, and the relevant person does not pay or bear income tax on the consideration (apart from this Chapter). (3) Condition B is that— (a) a relevant person receives relevant consideration in connection with the transaction in securities or any one or more of the transactions in securities, (b) two or more close companies are concerned in the transaction or transactions in securities concerned, and (c) the relevant person does not pay or bear income tax on the consideration (apart from this Chapter). (3A) In subsections (2) and (3) “relevant person” means— (a) the party, or (b) any person other than the party in relation to whom the condition in section 684(1)(d) is met. (4) In a case within subsection (2)(a) or (b) “relevant consideration” means consideration which— (a) is or represents the value of— (i) assets which are available for distribution by way of dividend by the company, or (ii) assets which would have been so available apart from anything done by the company, (b) is received in respect of future receipts of the company, or (c) is or represents the value of trading stock of the company. (5) In a case within subsection (2)(c) or (3) “relevant consideration” means consideration which consists of any share capital or any security issued by a close company and which is or represents the value of assets which— (a) are available for distribution by way of dividend by the company, (b) would have been so available apart from anything done by the company, or (c) are trading stock of the company. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) So far as subsection (2)(c) or (3) relates to share capital other than redeemable share capital, it applies only so far as the share capital is repaid (on a winding up or otherwise); and for this purpose any distribution made in respect of any shares on a winding up or dissolution of the company is to be treated as a repayment of share capital. (7A) The references in subsection (4)(a)(i) and (ii) to assets do not include assets shown to represent return of sums paid by subscribers on the issue of securities merely because the law of the country in which the company is incorporated allows assets of that description to be available for distribution by way of dividend. (7B) The references in subsections (4)(a)(i) and (5)(a) to assets which are available for distribution by way of dividend by the company include assets which are available for distribution to the company by way of dividend by any other company it controls. (8) References in this section to the receipt of consideration include references to the receipt of any money or money's worth. (9) In this section— “security” includes securities not creating or evidencing a charge on assets; “share” includes stock and any other interest of a member in a company.
Propose a change(1) Circumstances are excluded by this section if— (a) immediately before the transaction in securities (or the first of the transactions in securities) the party holds shares or an interest in shares in the close company, and (b) there is a fundamental change of ownership of the close company. (2) There is a fundamental change of ownership of the close company if, as a result of the transaction or transactions in securities, the condition in subsection (3) is met. (3) The condition in this subsection is that the original shareholder or original shareholders taken together with any associate or associates— (a) do not directly or indirectly hold more than 25% of the ordinary share capital of the close company, (b) do not directly or indirectly hold shares in the close company carrying an entitlement to more than 25% of the distributions which may be made by the close company, and (c) do not directly or indirectly hold shares in the close company carrying more than 25% of the total voting rights in the close company. (4) In this section “original shareholder” means a person who, immediately before the transaction in securities (or the first of the transactions in securities), held any ordinary share capital of the close company. (5) For the purposes of this section, shares of or share capital in the close company which are held by a person controlled by an original shareholder, or by two or more original shareholders taken together, count as shares or share capital held by that original shareholder or those original shareholders.
Propose a change(1) For the purposes of this Chapter a person obtains an income tax advantage if— (a) the amount of any income tax which would be payable by the person in respect of the relevant consideration if it constituted a ... distribution exceeds the amount of any capital gains tax payable in respect of it, or (b) income tax would be payable by the person in respect of the relevant consideration if it constituted a ... distribution and no capital gains tax is payable in respect of it. (2) So much of the relevant consideration as exceeds the maximum amount that could in any circumstances have been paid to the person or an associate of the person by way of a ... distribution at the time when Condition A or B in section 685 is met is to be left out of account for the purposes of subsection (1). (3) The amount of the income tax advantage is the amount of the excess or (if no capital gains tax is payable) the amount of the income tax which would be payable. (4) In this section— (a) distribution” does not include a distribution which is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph C or D in section 1000(1) of CTA 2010 (redeemable share capital or security issued as bonus in respect of shares in, or securities of, the company), and (b) “relevant consideration” has the same meaning as in section 685.
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