Section 715 | Meaning of “transaction entered into in connection with change in ownership”

(1)This section has effect for the purposes of section 714.

(2)A transaction is entered into in connection with a change in the ownership of Y if—

(a)it is the transaction, or one of the transactions, by which the change is effected, or

(b)it is entered into as part of a series of transactions, or scheme, of which transactions effecting the change have formed or will form part.

(3)Any reference in this section to a scheme is to a scheme, arrangements or understanding of any kind.

(4)It does not matter for the purposes of subsection (3)—

(a)whether the scheme, arrangements or understanding is legally enforceable, or

(b)how many transactions are involved.

(5)It does not matter, for the purpose of determining whether any transactions have formed or will form part of a series of transactions or scheme, that the parties to each of the transactions are not the same.

(6)The cases in which any two or more transactions are to be taken as forming part of a series of transactions or scheme include a case in which it would be reasonable to assume that one or more of them—

(a)would not have been entered into independently of the other or others, or

(b)if entered into independently of the other or others, would not have taken the same form or been on the same terms.