Corporation Tax Act 2009

1169Artificially inflated claims for relief or tax creditU.K.

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(1)To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it is to be disregarded for the purposes mentioned in subsection (2).

(2)Those purposes are determining for an accounting period the amount of—

(a)any relief to which a company is entitled under Chapter 2,

(b)any land remediation tax credits to which a company is entitled under section 1151,

(c)any relief to which a company carrying on [F1basic life assurance and general annuity business] is entitled under section 1161 [F2or 1162], and

(d)any [F3BLAGAB tax credits] to which such a company is entitled under section 1164.

(3)Arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a company to obtain—

(a)relief under Chapter 2 to which the company would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled,

(b)a land remediation tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled,

(c)relief under section 1161 [F4or 1162] to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled, or

(d)a life assurance company tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled.

(4)In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.

Textual Amendments

F2Words in s. 1169(2)(c) inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 16

F4Words in s. 1169(3)(c) inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 16