Corporation Tax Act 2010 section 356OM

Tracing value

Section 356OM provides rules for tracing how far the value of any property or right is derived from another property or right, allowing value to be tracked through multiple layers of entities.

• This section applies whenever it is necessary to determine the extent to which the value of a property or right is derived from another property or right for the purposes of this Part.
• Value may be traced through any number of companies, partnerships, trusts and other entities or arrangements, with no limit on the number of layers.
• At each stage of tracing, property held by a company, partnership or trust must be attributed to the relevant shareholders, partners, beneficiaries or other participants in whatever way is appropriate in the circumstances.
• The definitions of "partnership" and "trust" are extended to cover equivalent foreign arrangements, including overseas entities similar to partnerships and overseas fiduciary arrangements where persons hold and administer property on behalf of others.