PART 1Income tax, corporation tax and capital gains tax
Capital allowances: super-deductions etc
14Counteraction where arrangements are contrived etc
1
Any relevant tax advantage that would (in the absence of this section) be obtained as a result of relevant arrangements is to be counteracted by the making of such adjustments as are just and reasonable.
2
A tax advantage is “relevant” if that advantage is connected with a super-deduction or an SR allowance (for example, the obtaining of such a first-year allowance or the avoidance of a balancing charge under section 12 or 13).
3
Arrangements are “relevant” if—
a
the purpose, or one of the main purposes, of the arrangements is to obtain a relevant tax advantage, and
b
it is reasonable, taking account of all the relevant circumstances—
i
to conclude that the arrangements are, or include steps that are, contrived, abnormal or lacking a genuine commercial purpose, or
ii
to regard the arrangements as circumventing the intended limits of relief under CAA 2001 or otherwise exploiting shortcomings in that Act.
4
Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of—
a
an assessment,
b
the modification of an assessment,
c
amendment or disallowance of a claim (whether a claim for a first-year allowance or otherwise),
or otherwise.
5
In this section—
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
“tax advantage” is to be construed in accordance with section 577(4) of CAA 2001.
6
This section has effect in relation to any relevant arrangements entered into on or after 3 March 2021.