Part 2

Trading income
Chapter 2

Income taxed as trade profits

Charge to tax on trade profits

Arrangements for avoiding tax
6A
1
Subsection (3) applies if a person has entered into an arrangement the main purpose or one of the main purposes of which is to obtain a relevant tax advantage for the person.
2
In subsection (1) the reference to obtaining a relevant tax advantage includes obtaining a relevant tax advantage by virtue of any provisions of double taxation arrangements, but only in a case where the relevant tax advantage is contrary to the object and purpose of the provisions of the double taxation arrangements (and subsection (3) has effect accordingly, regardless of anything in section 6(1) of TIOPA 2010).
3
The relevant tax advantage is to be counteracted by means of adjustments.
4
For this purpose adjustments may be made (whether by an officer of Revenue and Customs or by the person) by way of an assessment, the modification of an assessment, amendment or disallowance of a claim, or otherwise.
5
In this section “
relevant tax advantage
” means a tax advantage in relation to income tax to which the person is chargeable (or would without the tax advantage be chargeable) by virtue of section 6(1A).
6
In this section “
tax advantage
” includes—
a
a relief or increased relief from tax,
b
repayment or increased repayment of tax,
c
avoidance or reduction of a charge to tax or an assessment to tax,
d
avoidance of a possible assessment to tax,
e
deferral of a payment of tax or advancement of a repayment of tax, and
f
avoidance of an obligation to deduct or account for tax.
7
In this section—
- “arrangement” (except in the phrase “double taxation arrangements”) includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable;
- “
double taxation arrangements
” means arrangements which have effect under section 2(1) of TIOPA 2010 (double taxation relief by agreement with territories outside the United Kingdom).
Ss. 6A, 6B inserted (with effect in accordance with s. 82 of the amending Act) by Finance Act 2016 (c. 24), s. 78(2) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))