CTM36815 - Particular topics: transactions in securities: definition of transaction in securities
The definitions of ‘securities ‘and ‘transactions in securities ‘
- for income tax purposes on or after 6 April 2007 are in ITA2007/S713
- for income tax purposes before 6 April 2007 and for corporation tax (all periods) in ICTA88/S709 (2).
‘Securities ‘includes shares and stock as well as any interest in a company not limited by shares such as a company limited by guarantee.
‘Transactions in securities ‘are ‘transactions of whatever description relating to securities ‘.
A transaction in securities has been held by the Courts to include the redemption of a security, CIR v Parker 43TC396, the alteration of rights attached to shares, CIR v Joiner 50TC449, and loans by a company to individuals who subsequently acquired the company, Williams v IRC 54TC257. The payment of a dividend is not a transaction in securities, CIR v Laird Group plc 75TC399.