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

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