MTT17020 | Scope: Determining ownership of entities: Timing of transfers of interests

Where ownership interests in an entity are transferred from one individual or entity to another individual or entity, the effective date of that transfer is the earlier of:

• the time when the obligations of the parties necessary to effect the transfer have been met, and

• the time when substantive consideration for the transfer has been provided.

'Substantive consideration' means any amount of consideration for the transfer, other than an amount that:

• was provided before the transfer, and

• would not be refundable in the event that the transfer did not take place due to a failure by the transferee to meet obligations pertaining to the transfer.

This is set out in Section 247 of Finance (No.2) Act 2023.