Section 435: Disregard of increases and decreases in balance sheet amounts
1305.This section is an anti–avoidance provision. It is based on paragraph 38A(1) to(3) and (5) of Schedule 10 to FA 2006.
1306.The section targets arrangements that increase or reduce the amounts shown in a company’s balance sheet in respect of plant or machinery.
1307.Subsection (1) provides that this section applies if:
there is a question as to the application of Chapter 3 or 4 and the answer to the question relies on amounts in respect of plant or machinery shown in any balance sheet of any company;
there has been an arrangement that results in an increase or reduction of the amount that would otherwise have been shown on the balance sheet; and
that arrangement had as its main purpose, or one of its main purposes, securing a relevant tax advantage (see subsection (2)).
1308.If this section applies the increase or decrease in the amount in respect of plant or machinery is to be ignored (see subsection (3)).
