In order to ascertain whether there is a guaranteed return for
the purposes of Chapter 12 of Part 4 of ITTOIA05, section 559
requires a consideration of ‘the return from the
disposal’. The basic charge in ITTOIA05/S555 is on a profit
or gain from an individual disposal. But in deciding whether there
is a guaranteed return, ITTOIA05/S561 allows more than one disposal
in the scheme or arrangement to be taken into account, and the net
result considered – that is to say, the profits or gains less
losses on those disposals.
Where more than one person enters into transactions but those
transactions are part of the same scheme or arrangements then the
net return is computed by assuming that the profits or losses from
all of those transactions are realised or made by the same person.
It covers schemes or arrangements (whether or not legally
enforceable) where the share of each person entering into the
scheme is to any extent determined from the net profit generated by
the scheme. For example, where members of the same family enter
into different parts of the scheme but the profit or loss of each
person is calculated separately.
