OT50060 | Oil contractors ring fence: anti avoidance provisions

A targeted anti avoidance provision is included at CTA2010\S356NA(5) and (6), which operates by reference to a purpose test.

Where one of the main purposes of an arrangement is to secure that the hire cap does not apply, or applies to a lesser degree than it would otherwise have done so, then the section has effect as if that elimination or reduction had not been effective.

Whether, and the extent to which, tax considerations underlay a transaction or arrangement is a question of fact and all the relevant facts and circumstances will have to be considered.

Arrangement has a wide meaning including any agreement, understanding, scheme, transaction or series of transactions. It is not necessary that these arrangements are legally enforceable and they do not need to be in writing.