Relief for investment expenditure
I15Section 2: meaning of “disqualifying purposes”
1
Expenditure is incurred for disqualifying purposes for the purposes of section 2 so far as it arises directly or indirectly in connection with, or otherwise in consequence of, any avoidance arrangements.
2
For this purpose arrangements are “avoidance arrangements” if—
a
the main purpose, or one of the main purposes, of the arrangements is to secure a relevant levy advantage, and
b
it is reasonable, taking account of all the relevant circumstances—
i
to conclude that the arrangements are, or include steps that are, contrived, abnormal or lacking a genuine commercial purpose, or
ii
to regard the arrangements as circumventing the intended limits relating to the relief under section 2(3) or as otherwise exploiting shortcomings in this Act.
3
For this purpose “a relevant levy advantage” includes—
a
relief or increased relief from the levy,
b
repayment or increased repayment of the levy,
c
avoidance or reduction of a charge to the levy or an assessment to the levy,
d
avoidance of a possible assessment to the levy,
e
deferral of a payment of the levy or advancement of a repayment of the levy, and
f
avoidance of an obligation to deduct or account for the levy.
4
In this section “arrangements” includes any transaction, series of transactions, scheme or arrangement, whether or not legally enforceable.