Taxation (International and Other Provisions) Act 2010

[F1 CHAPTER 10 U.K. Anti-avoidance

Textual Amendments

F1 Pt. 10: the existing Pt. 10 renumbered as Pt. 11 (except for ss. 375, 376 which are repealed), the existing ss. 372-374, 377-382 renumbered as ss. 499-507 and a new Pt. 10 (ss. 372-498) inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1, 10(1)(2)(a)(3) (with Sch. 5 paras. 27, 32-34)

461 Counteracting effect of avoidance arrangements U.K.

(1) Any tax advantage that would (in the absence of this section) arise from relevant avoidance arrangements is to be counteracted by the making of such adjustments as are just and reasonable.

(2) Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of an assessment, the modification of an assessment, amendment or disallowance of a claim or otherwise.

(3) For the purposes of this section arrangements are “relevant avoidance arrangements” if conditions A and B are met.

(4) Condition A is that the main purpose, or one of the main purposes, of the arrangements is to enable a company to obtain a tax advantage.

(5) Condition B is that the tax advantage is attributable (or partly attributable) to any company—

(a) not leaving tax-interest expense amounts out of account that it otherwise would have left out of account,

(b) leaving tax-interest expense amounts out of account that are lower than they otherwise would have been,

(c) leaving tax-interest expense amounts out of account in an accounting period other than that in which it otherwise would have left them out of account,

(d) bringing tax-interest expense amounts into account that it otherwise would not have brought into account,

(e) bringing tax-interest expense amounts into account that are higher than they otherwise would have been, or

(f) bringing tax-interest expense amounts into account in an accounting period other than that in which it otherwise would have brought them into account.

(6) In subsection (5)—

(a) references to leaving amounts out of account are to leaving them out of account under this Part;

(b) references to bringing amounts into account are to bringing them into account under this Part.

(7) In this section—

• “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and

• “tax advantage” includes—

  (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.

(8) For the purposes of the definition of “tax advantage” any reference to tax includes—

(a) any amount chargeable as if it were corporation tax or treated as if it were corporation tax, and

(b) diverted profits tax.]