Taxation (International and Other Provisions) Act 2010 section 241

Scheme including issue of shares not conferring qualifying beneficial entitlement

Section 241 defines a sixth type of "deduction scheme" — one that involves the issue of shares which do not give the holder a qualifying beneficial entitlement, forming part of a broader set of anti-avoidance rules targeting arrangements designed to generate tax deductions.

• This section identifies a specific category of deduction scheme involving the issue of shares that lack a qualifying beneficial entitlement.
• It is one of seven sections that together define the various types of arrangement treated as a "deduction scheme" for anti-avoidance purposes.
• Where shares are issued as part of a scheme but do not confer a qualifying beneficial entitlement on the holder, the arrangement may fall within this provision.
• The provision originates from paragraphs 9 and 10 of Schedule 3 to the Finance (No 2) Act 2005 and was subsequently amended by Finance Act 2016.

---