Finance Act 2009

67Deductions for employee liabilitiesU.K.

This adran has no associated Nodiadau Esboniadol

(1)ITEPA 2003 is amended as follows.

(2)In section 346 (deduction for employee liabilities), after subsection (2) insert—

(2A)Nor is a deduction allowed for a payment which falls within paragraph A, B or C if the payment is made in pursuance of arrangements the main purpose, or one of the main purposes, of which is the avoidance of tax.

(3)After section 556 insert—

556ADeductible payments made pursuant to tax avoidance arrangements

No deduction may be made under section 555 if the deductible payment is made in pursuance of arrangements the main purpose, or one of the main purposes, of which is the avoidance of tax.

(4)The amendments made by this section have effect in relation to payments made on or after 12 January 2009 (irrespective of when the arrangements are made).