PART 5Promoters of tax avoidance schemes

Introduction

234Meaning of “relevant proposal” and “relevant arrangements”

1

“Relevant proposal” means a proposal for arrangements which (if entered into) would be relevant arrangements (whether the proposal relates to a particular person or to any person who may seek to take advantage of it).

2

Arrangements are “relevant arrangements” if—

a

they enable, or might be expected to enable, any person to obtain a tax advantage, and

b

the main benefit, or one of the main benefits, that might be expected to arise from the arrangements is the obtaining of that advantage.

3

“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.

4

“Arrangements” includes any agreement, scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.