(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.
Commencement Information
I1S. 5 in force at Royal Assent