[F1Value of the counteracted advantage: basic ruleU.K.
Textual Amendments
F1Sch. 43C inserted (15.9.2016) (with effect in accordance with s. 158(15) of the amending Act) by Finance Act 2016 (c. 24), s. 158(3)
2[F2(1)The “value of the counteracted tax advantage” is—U.K.
(a)for a penalty under section 212A, the additional amount due or payable in respect of tax as a result of the counteraction mentioned in subsection (1)(d) of that section, and
(b)for a penalty under section 212B, the additional amount due or payable in respect of tax (by the partner in question) as a result of the counteraction mentioned in subsection (1)(b) of that section.]
(2)The reference in sub-paragraph (1) to the additional amount due and payable includes a reference to—
(a)an amount payable to HMRC having erroneously been paid by way of repayment of tax, and
(b)an amount which would be repayable by HMRC if the counteraction were not made.
(3)The following are ignored in calculating the value of the counteracted advantage—
(a)group relief, and
(b)any relief under section 458 of CTA 2010 (relief in respect of repayment etc of loan) which is deferred under subsection (5) of that section.
(4)For the purposes of this paragraph consequential adjustments under section 210 are regarded as part of the counteraction in question.
(5)If the counteraction affects [F3a] person's liability to two or more taxes, the taxes concerned are to be considered together for the purpose of determining the value of the counteracted advantage.
(6)This paragraph is subject to paragraphs 3 and 4.]
Textual Amendments
F2Sch. 43C para. 2(1) substituted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(4)(a)
F3Word in Sch. 43C para. 2(5) substituted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(4)(c)