SCHEDULES
F1SCHEDULE 34APromoters of tax avoidance schemes: defeated arrangements
PART 3Relevant defeats: associated persons
Attribution of relevant defeats
17
1
Sub-paragraph (2) applies if—
a
there is (or has been) a person (“Q”),
b
arrangements (“the defeated arrangements”) have been entered into,
c
an event occurs such that either—
i
there is a relevant defeat in relation to Q and the defeated arrangements, or
ii
the condition in sub-paragraph (i) would be met if Q had not ceased to exist,
d
at the time of that event a person (“P”) is carrying on a business as a promoter (or is carrying on what would be such a business under the condition in paragraph 3(2)), and
e
Condition 1 or 2 is met in relation to Q and P.
2
The event is treated for all purposes of this Part of this Act as a relevant defeat in relation to P and the defeated arrangements (whether or not it is also a relevant defeat in relation to Q, and regardless of whether or not P existed at any time when those arrangements were promoted arrangements in relation to Q).
3
Condition 1 is that—
a
P is not an individual,
b
at a time when the defeated arrangements were promoted arrangements in relation to Q—
i
P was a relevant body controlled by Q, or
ii
Q was a relevant body controlled by P, and
c
at the time of the event mentioned in sub-paragraph (1)(c)—
i
Q is a relevant body controlled by P,
ii
P is a relevant body controlled by Q, or
iii
P and Q are relevant bodies controlled by a third person.
4
Condition 2 is that—
a
P and Q are relevant bodies,
b
at a time when the defeated arrangements were promoted arrangements in relation to Q, a third person (“C”) controlled Q, and
c
C controls P at the time of the event mentioned in sub-paragraph (1)(c).
5
For the purposes of sub-paragraphs (3)(b) and (4)(b), the question whether arrangements are promoted arrangements in relation to Q at any time is to be determined on the assumption that the reference to “design” in paragraph (b) of section 235(3) (definition of “promoter” in relation to relevant arrangements) is omitted.
Sch. 34A inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(5)