When making a TIS clearance application, do you apply under both s701 ITA 2007 and s748 CTA 2010, or just one?
Who is the person with the transactions in securities?
I have never known a company to be served a counteraction notice.
And the person with the transaction in securities is generally the individual in any event. So just section 701.
That is what another commentator said
however, counteraction notices have been served to companies and the templates include reference to the CTA legislation. So is it not best practice to include both?
I am not sure on what basis counteraction notices have been served to companies. An offending receipt under a transaction in securities is an income receipt (aka a dividend) dressed up as a capital receipt.
The income receipt will almost always be exempt. The capital receipt will often also be exempt under SSE.
Why HMRC would issue a counteraction notice to turn a taxable capital receipt into an exempt income receipt I do not know.
There will be a few circumstances when both the income and the capital receipt would be taxable, but again there is no merit in a counteraction notice.
There will be even fewer circumstances when the income receipt would be taxable, but the capital receipt would be exempt.
I can tell you that the templates will have been drawn up by people that will not have even thought about it though.
For section 748 to be in point, the company must be a party to a transaction in securities, such as a share for share exchange.
It probably does not do any harm, but to my mind if you apply for a clearance where a counteraction notice would be pointless or ineffectual, then it tells HMRC that you have not thought about your transaction.
If you have not thought about your transaction, they may consider it necessary to spend longer thinking about it than they otherwise might, which causes a delay.
Rule 1 of any clearance is "is the clearance necessary?".
In the case I'm dealing with
In the one on my table, it seems to be that only s701 is needed. And your point about the templates is of course bang on. Thanks.