In section 809S of ITA 2007 (remittance basis: anti-avoidance provisions relating to transfers of mixed funds), for subsection (4) substitute—

“(4)

Income tax advantage” means—

(a)

a relief from income tax or increased relief from income tax,

(b)

a repayment of income tax or increased repayment of income tax,

(c)

the avoidance or reduction of a charge to income tax or an assessment to income tax, or

(d)

the avoidance of a possible assessment to income tax;

and for this purpose “relief from income tax” includes a tax credit.

(4A)

For the purposes of subsection (4)(c) and (d) it does not matter whether the avoidance or reduction is effected—

(a)

by receipts accruing in such a way that the recipient does not pay or bear income tax on them, or

(b)

by a deduction in calculating profits or gains.”