Taxation (International and Other Provisions) Act 2010

247 Cases where payee treated as having reduced liability as a result of scheme

(1) This section sets out two cases in which the payee’s liability to tax in respect of the scheme payment is treated for the purposes of section 245(4)(b) as reduced as a result of provision made or imposed by the deduction scheme.

(2) But that does not mean that there are no other cases in which that liability is so reduced.

(3) In this section “the scheme payment” means the payment or payments that the payee receives or is entitled to receive as a result of the transaction or series of transactions referred to in section 245(2).

(4) Case A is that an amount arising from—

(a) a transaction forming part of the scheme, or

(b) a series of such transactions,

falls to be deducted by, or otherwise allowed to, the payee in calculating for tax purposes any profits or losses arising from the scheme payment or the entitlement to receive it.

(5) Case B is that an amount of relief arising from—

(a) a transaction forming part of the scheme, or

(b) a series of such transactions,

may be deducted from the amount of income or gains arising from the scheme payment or the entitlement to receive it.