(1)No deduction is allowed under section 1219 for any particular expenses of management if any part of those expenses is incurred directly or indirectly in consequence of, or otherwise in connection with, any arrangements for securing a tax advantage.
(2)In subsection (1) “arrangements for securing a tax advantage” means arrangements the main purpose, or one of the main purposes, of which is to secure—
(a)the allowance of a deduction (or increased deduction) under section 1219, or
(b)any other tax advantage.
(3)Subsection (1) does not apply if, as a result of [F1section 799 of CTA 2010] (manufactured payments under arrangements having an unallowable purpose), the company incurring the expenses is not entitled to a relevant tax relief in respect of, or referable to, the whole or any part of the expenses.
(4)The reference in subsection (1) to expenses of management includes amounts treated by any provision as deductible under section 1219.
(5)In this section—
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable),
“relevant tax relief” has the same meaning as in [F2section 799(3) of CTA 2010], and
“tax advantage” has the meaning given by [F3section 1139 of CTA 2010].
Textual Amendments
F1Words in s. 1248(3) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 689(a) (with Sch. 2)
F2Words in s. 1248(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 689(b)(i) (with Sch. 2)
F3Words in s. 1248(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 689(b)(ii) (with Sch. 2)