PART 6Apprenticeship levy
Anti-avoidance
103Anti-avoidance
1
For the purposes of this section “avoidance arrangements” are arrangements the main purpose, or one of the main purposes, of which is to secure that a person—
a
benefits, or further benefits, from an entitlement to a levy allowance for a tax year, or
b
otherwise obtains an advantage in relation to apprenticeship levy.
2
Subsection (3) applies where, in consequence of avoidance arrangements within subsection (1)(a) or (b), a person incurs a liability to pay secondary Class 1 contributions in a particular tax year (as opposed to another tax year).
3
If the person would (apart from this subsection) obtain an advantage in relation to apprenticeship levy as a result of incurring the liability at the time mentioned in subsection (2), section 100 has effect as if the liability had been incurred when it would have been incurred but for the avoidance arrangements.
4
Subsection (6) applies where (apart from this section) a person (“P”)—
a
would be in a position to use or make greater use of a levy allowance for a tax year, in consequence of avoidance arrangements within subsection (1)(a), or
b
would otherwise obtain an advantage in relation to apprenticeship levy in consequence of avoidance arrangements within subsection (1)(a).
5
But subsection (6) only applies so far as the advantage in relation to apprenticeship levy cannot be counteracted under subsection (3).
6
P is not entitled to a levy allowance for the tax year.
7
In this section “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
8
In this section a reference to “an advantage in relation to apprenticeship levy” includes a reference to—
a
repayment or increased repayment of apprenticeship levy,
b
avoidance or reduction of a charge, or an assessment, to the levy,
c
avoidance of a possible assessment to the levy,
d
deferral of a payment of, or advancement of a repayment of, the levy, and
e
avoidance of an obligation to account for the levy.
9
Sections 101 and 102 are to be ignored for the purpose of determining under subsection (4) what the position would be apart from this section.
10
In subsection (2) the reference to “a particular tax year” is to be read as including a reference to the period of 12 months beginning with 6 April 2016.