What did section 397C of ITTOIA 2005 define?

Section 397C defined the term 'minority shareholder' for the purposes of the disguised interest provisions in the Income Tax (Trading and Other Income) Act 2005. It set out the criteria for determining whether a person holding a stake in a company qualified as a minority shareholder under those specific tax rules.

When was section 397C of ITTOIA 2005 repealed?

Section 397C was omitted in its entirety by Finance Act 2016, section 5 and Schedule 1, paragraph 1(1). The repeal took effect from 15th September 2016. From that date onwards, the definition of 'minority shareholder' contained in section 397C no longer forms part of United Kingdom law.

Which legislation originally introduced section 397C into ITTOIA 2005?

Section 397C was originally introduced into the Income Tax (Trading and Other Income) Act 2005 by Finance Act 2008, Schedule 12, paragraph 4. It was inserted as part of the framework establishing the disguised interest rules and remained in force until its removal by Finance Act 2016.

Is the definition in section 397C still relevant for any transactions?

Practitioners dealing with periods or transactions before 15th September 2016 may still need to consider the original wording of section 397C as it applied at that time. For arrangements on or after that date, the definition no longer applies and the revised disguised interest rules under Finance Act 2016 amendments govern instead.

Income Tax (Trading and Other Income) Act 2005 section 397C

Meaning of "minority shareholder"

Section 397C defined the term "minority shareholder" for the purposes of the disguised interest provisions, but was removed from the legislation with effect from 15th September 2016.

Section 397C provided a definition of "minority shareholder" used in the context of the tax rules on disguised interest
The section was introduced by Finance Act 2008, Schedule 12, paragraph 4
It was subsequently omitted in its entirety by Finance Act 2016, section 5 and Schedule 1, paragraph 1(1)
The removal took effect from 15th September 2016, meaning the definition no longer applies from that date onwards

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