Part 2Double taxation relief

CHAPTER 2Double taxation relief by way of credit

Schemes and arrangements designed to increase relief: anti-avoidance

83Schemes and arrangements referred to in section 82(4)

1

For the purposes of section 82(4), a scheme or arrangement is within this section if it is within subsection (2) or (4).

2

A scheme or arrangement is within this subsection if—

a

it is not an underlying-tax scheme or arrangement, and

b

one or more of sections 84 to 88 apply to it.

3

For the purposes of this section, a scheme or arrangement is an “underlying-tax” scheme or arrangement if its main purpose, or one of its main purposes, is to cause an amount of underlying tax allowable in respect of a dividend paid by an overseas-resident body corporate to be taken into account in a person’s case.

4

A scheme or arrangement is within this subsection if—

a

it is an underlying-tax scheme or arrangement, and

b

one or more of sections 84 to 88 would, on the assumption in subsection (5), apply to it.

5

The assumption is that the body corporate is resident in the United Kingdom.

6

Nothing in subsection (5) requires it to be assumed that there is any change in the place or places at which the body corporate carries on its activities.

7

In subsection (3) “overseas-resident” means resident in a territory outside the United Kingdom.