Section 931P | Schemes involving payments not on arm's length terms ^F1

(1)This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class.

(2)The distribution does not fall into an exempt class if—

(a)the distribution is made as part of a tax advantage scheme, and

(b)the following condition is met.

(3)The condition is that—

(a)the scheme includes a payment or receipt, or the giving up of a right to income, by a relevant person in respect of goods or services, and

(b)the amount of the payment or receipt, or the amount of income given up, differs from the amount the relevant person would have paid, received or given up in respect of those goods or services had the distribution not been made.

(4)This section does not apply to a scheme that consists of a transaction or series of transactions in relation to which Part 4 of TIOPA 2010 (provision not at arms length between parties under common control) applies.^F2