Finance Act 2010

Anti-avoidance

14 (1) This paragraph applies where—

(a) relevant arrangements are entered into by one or more persons during the chargeable period, and

(b) the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.

(2) “Relevant arrangements” means arrangements involving either or both of the following—

(a) the making of a payment of money, or the provision of any money’s worth or other benefit, otherwise than during the chargeable period, and

(b) the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.

(3) A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—

(a) in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money’s worth or other benefit provided, during the chargeable period, or

(b) in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.

(4) Liability to bank payroll tax is to be determined as it would have been if—

(a) in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money’s worth or other benefit provided, during the chargeable period, or

(b) in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.