Part 14Remediation of contaminated F1or derelict land

Annotations:
Amendments (Textual)
F1

Words in Pt. 14 heading inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 2

Chapter 5Tax avoidance

1169Artificially inflated claims for relief or tax credit

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 F5basic life assurance and general annuity business is entitled under section 1161 F3or 1162, and

d

any F4BLAGAB 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 F2or 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.