PART 3CALCULATION OF TAX AND RELIEFS

Reliefs

I131Reliefs: anti-avoidance

1

Relief is not available under any of the provisions mentioned in subsection (2) or (3) of section 30 in respect of a land transaction—

a

which is a tax avoidance arrangement, or

b

which forms part of arrangements which are tax avoidance arrangements.

2

An arrangement is a ““tax avoidance arrangement”” if—

a

the obtaining of a tax advantage for any person is the main purpose, or one of the main purposes, of the buyer in the land transaction entering into the arrangement, and

b

the arrangement lacks genuine economic or commercial substance other than the obtaining of a tax advantage.

3

In this section—

  • “"arrangement”” (“"trefniant”") includes any transaction, scheme, agreement, grant, understanding, promise, undertaking or series of any of those things (whether or not legally enforceable);

  • “"tax”” (“"treth”") means land transaction tax, income tax, corporation tax, capital gains tax, stamp duty land tax, stamp duty reserve tax or stamp duty;

  • “"tax advantage”” (“"mantais drethiannol”") means—

    1. a

      relief or increased relief from tax,

    2. b

      repayment or increased repayment of tax,

    3. c

      avoidance or reduction of a charge to tax, or

    4. d

      deferral of a payment of tax or advancement of a repayment of tax.