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.