Taxation of Chargeable Gains Act 1992

[F1 PART 4 U.K. Anti-avoidance

Textual Amendments

F1 Sch. 1A inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 14

11 (1) This paragraph applies if a person has entered into any arrangements the main purpose, or one of the main purposes, of which is to obtain a tax advantage for the person as a result (wholly or partly) of— U.K.

(a) a provision of this Schedule applying or not applying, or

(b) double taxation arrangements having effect despite a provision of this Schedule in a case where the advantage is contrary to the object and purpose of the double taxation arrangements.

(2) The tax advantage is to be counteracted by the making of such adjustments as are just and reasonable.

(3) The adjustments may be made (whether by an officer of Revenue and Customs or the person) by way of an assessment, the modification of an assessment, amendment or disallowance of a claim, or otherwise.

(4) The counteraction has effect in a treaty shopping case regardless of section 6(1) of TIOPA 2010.

(5) This paragraph applies by reference to—

(a) arrangements entered into on or after 22 November 2017 in a treaty shopping case, and

(b) arrangements entered into on or after 6 July 2018 in any other case.

(6) In this paragraph—

• “arrangements” (except in the expression “double taxation arrangements”) includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable),

• “double taxation arrangements” means arrangements that have effect under section 2(1) of TIOPA 2010,

• “tax” means capital gains tax or corporation tax,

• “tax advantage” includes—

  (a)

  relief or increased relief from tax,

  (b)

  repayment or increased repayment of tax,

  (c)

  avoidance or reduction of a charge to tax or an assessment to tax,

  (d)

  avoidance of a possible assessment to tax,

  (e)

  deferral of a payment of tax or advancement of a repayment of tax, and

  (f)

  avoidance of an obligation to deduct or account for tax, and

• “treaty shopping case” means a case where this paragraph applies as a result of sub-paragraph (1)(b).]