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HMRC internal manual

Corporate Finance Manual

Loan relationships: tax avoidance: regime anti-avoidance rule: consequential repeals

CTA09/S455B-D and S698B-D



A number of existing rules were repealed as a result of the introduction of the regime anti-avoidance rule. In each case, the paragraph of Schedule 7 making the repeal states that the repealed provision was superseded by the regime rule. This makes clear that the repeals do not indicate any change to Parliament’s intentions with regard to the situations previously addressed by the repealed rules. It does not, of course, mean that the regime anti-avoidance rules necessarily apply in the same terms as the repealed rules.

The repeals take effect in respect of arrangements entered into, conditions fulfilled, disposals made or schemes effected on or after 18 November 2015, according to the terms of the particular rules.

The repealed Part 5 provisions are:

  • Section 328(4A) and sections 328A to 328H (one-way exchange effects)
  • Section 347 (disapplication of Chapter 4 of Part 5 where the transferor of a loan is party to avoidance)
  • Section 443 (restriction of relief for interest where tax relief schemes involved)
  • Section 454 (reset bonds)
  • Section 455 (disposals for consideration not fully recognised by accounting practice) The following Part 7 provisions concerned with derivative contracts were also repealed:


  • Section 606(4C) to (4E) and sections 606A to 606H (one-way exchange effects)
  • Section 629 (disapplication of section 625 where the transferor of a derivative contract is party to avoidance)
  • Section 698 (disposals for consideration not fully recognised by accounting practice)