Income Tax Act 2007 section 809DZA

Application of Chapter

Section 809DZA sets out the conditions under which the anti-avoidance rules in this Chapter apply to disposals of assets routed through partnerships in order to obtain a tax advantage.

• The rules apply where an asset is disposed of by a transferor to a transferee through a partnership, and a main purpose of the arrangement is to obtain a tax advantage for any person
• The transferor and transferee must each be (or be connected with) a member of the relevant partnership or an associated partnership, though they need not be members at the same time
• The rules do not apply where the transferor and transferee are spouses, civil partners living together, or close family members such as siblings or direct ancestors and descendants
• The rules are triggered only if, had the asset been disposed of directly between the parties, the consideration (or market value if consideration is nil or substantially below market value) would have been taxable as income of the transferor