Commentary

D9.404 Other definitions

Corporate tax
Corporate tax | Commentary

D9.404 Other definitions

Corporate tax | Commentary

D9.404 Other definitions

'Holding of securities'. A person holds securities at a particular time if he or she is entitled to them at that time. A person holds securities on a particular day if he or she is entitled to them throughout that day or becomes entitled to them on that day and does not cease to become entitled to them on that day1. This means that the person is entitled to them on the day of acquisition (unless he or she disposes of them on the same day) but not on the day of disposal. A person acquires securities when he or she becomes entitled to them2, which, if they are acquired under an agreement, is the time when the agreement is made, even if transfer takes place later3.

A partner in a Scottish partnership is treated as entitled to the securities held by the partnership4.

In Revenue and Customs Comrs v D'Arcy5, the taxpayer entered into a tax avoidance scheme. She acquired gilts on 14 February 2002 (cum-div) from B with an undertaking to re-sell them (ex-div) to the original owner on 20 February 2002. The agreement required the taxpayer to make a payment of manufactured interest to B. This was a repo entered into by B and its transactions were not subject to the accrued income legislation (see D9.431). She immediately sold them (cum-div) to a third party (J) and repurchased them on 20 February 2002 from J (ex-div); this was not a repo but a purchase and resale

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial