Corporation Tax

SSE ― anti-avoidance

Produced by Tolley
  • 19 Oct 2021 23:02

The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • SSE ― anti-avoidance
  • SSE anti-avoidance ― arrangements
  • SSE anti-avoidance ― untaxed gain
  • SSE anti-avoidance ― control
  • SSE anti-avoidance ― significant change of trading activities

SSE ― anti-avoidance

The SSE regime contains anti-avoidance provisions which are designed to prevent the abuse of the exemption.

HMRC has confirmed that these anti-avoidance provisions are designed to catch very specific activities and do not expect these provisions to be triggered very often.

The legislation sets out that SSE will not apply in situations where in pursuance of arrangements entered into with the sole or main benefit being to secure an exempt gain, an untaxed gain arises within a company as a result of a disposal of shares and before the gain arose, either:

  1. the investing company acquired control of the target company, or the same person(s) acquire ‘control’ of both companies

  2. there has been a ‘significant change in the trading activities’ of the target company at a time when it was controlled by the investing company, or both companies were controlled by the same person or persons

These terms are explained below.

For more in depth commentary on these provisions, see Simon’s Taxes D1.1050.

SSE anti-avoidance ― arr

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information

LEARN MORE LEARN MORE

Popular Articles

Research and development expenditure credit (RDEC)

RDEC ― large company R&D reliefSince 1 April 2016, or from 1 April 2013 by election, large company R&D relief is given through research and development expenditure credits (RDEC), which is a taxable credit payable to the company. As the credit is taxable, it is also sometimes called an above the

16 Dec 2021 14:20 | Produced by Tolley Read more Read more

Losses on shares set against income

Usually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note for further details.This rule can be

04 Jan 2022 11:11 | Produced by Tolley Read more Read more

Solicitors ― VAT treatment of services

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s

25 Oct 2021 13:44 | Produced by Tolley Read more Read more