CTM36820 - Particular topics: transactions in securities: 'circumstances’ and relevant consideration

Certain circumstances set out in ITA07/S685 must be satisfied before the legislation can be applied to a transaction in securities.

These circumstances are where either condition A (see CTM36822) or condition B (see CTM36823) are met. These conditions relate to close companies, see CTM60060. But for this purpose the definition includes a company that would have been a close company if it were resident in the UK. Each condition has its own definition of relevant consideration.

For transactions occurring before 6 April 2016:

The relevant consideration is the amount received by the person as a result of the transaction or transactions in securities which can be taken into account in determining any tax charge under the transactions in securities provisions. It includes both money and money’s worth.

The type of relevant consideration depends on whether the transaction falls within condition A or condition B. See CTM36822 and CTM36823.

For transactions occurring on or after 6 April 2016:

The relevant consideration is the amount received by “a relevant person”, who may not necessarily be a party to the transaction or transactions, which can be taken into account in determining any tax charge under the transactions in securities provisions. FA16 introduced ITA07/S685 (3A) providing that a relevant person is the person who is party to the transaction or any other person who gains an Income Tax advantage as a consequence of the transaction or transactions.