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GB 5: Arrangements involving trust beneficiaries
or “Rules for changing trust beneficiaries who own company shares”
You could also call this:

“Rules for arrangements that try to misuse qualifying company status”

If you own a share in a company, and there’s an arrangement that lets that company or another company be a qualifying company, you need to be careful. This law applies when the arrangement is meant to go against what the rules for qualifying companies are supposed to do. If this happens, the company won’t be treated as a qualifying company anymore. This means it won’t get the special tax benefits that qualifying companies usually get. The law is trying to stop people from using tricks to get around the rules for qualifying companies. If you’re not sure what a qualifying company is, you can look it up in subpart HA of the law, which explains all about them.

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Next up: GB 7: Arrangements involving CFC control interests

or “Rules for foreign company ownership to prevent tax avoidance”
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Part G Avoidance and non-market transactions
Avoidance: specific

GB 6Arrangements involving qualifying companies

  1. This section applies when—

  2. a share in a company has been subject to an arrangement at a time; and
    1. the arrangement allows the company or another company (the relevant company) to be a qualifying company at the time; and
      1. a purpose of the arrangement is to defeat the intent and application of subpart HA (Qualifying companies (QC)).

        1. The relevant company is treated as not being a qualifying company at that time.

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        Notes
        • Section GB 6(1)(c): amended, on , by section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).