CTM36820 - Particular topics: transactions in securities: definition of ‘income tax advantage ‘, ‘tax advantage ‘ and ‘corporation tax advantage ‘
Income tax advantage
On or after 6 April 2007, this is defined at ITA07/S683 as
i) relief (or increased relief) from income tax,
ii) repayment (or increased repayment) of income tax,
iii) avoidance (or reduction) of a charge (or assessment) to income tax, or
iv) avoidance of a possible assessment to income tax.
Tax advantages
Prior to 6 April 2007, the definition of tax advantage at ICTA88/S709 (1) includes both income tax advantage and corporation tax advantages. This applies to define income tax advantages prior to 6 April 2007 and corporation tax advantages for accounting periods ending before 6 April 2007 as
i) relief (or increased relief) from tax,
ii) repayment (or increased repayment) of tax,
iii) avoidance (or reduction) of a charge (or assessment) to tax.
Corporation tax advantage
For company accounting periods ending after 5 April 2007 ICTA88/S709 (1) (as amended) defines corporation tax advantage as
i) relief (or increased relief) from corporation tax,
ii) repayment (or increased repayment) of corporation tax,
iii) avoidance (or reduction) of a charge (or assessment) to corporation tax.
The avoidance etc of a charge to CGT is outside the scope of this avoidance legislation.
