Corporation Tax Act 2009 section 347

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

Section 347 provides a transitional rule ensuring that the anti-avoidance disapplication of loan relationship continuity rules does not apply to transactions that took place before 16 May 2008.

• Section 347 disapplies the continuity of treatment rules in Chapter 4 of Part 5 where the transferor is party to a tax avoidance arrangement.
• This anti-avoidance provision does not apply to transactions that took place before 16 May 2008.
• Where a series of transactions is involved, the relevant date is when the first transaction in the series took place.
• Transactions or series of transactions begun before 16 May 2008 continue to benefit from the continuity rules regardless of any avoidance motive.