Section 63H | Meaning of “artificial” ^F1

(1)For the purposes of sections 63F to 63M, an arrangement is artificial if—

(a)it is of a type specified by the Welsh Ministers by regulations, and

(b)where subsection (3) applies, no determination has been made in relation to the (particular) arrangement.

(2)The regulations may only specify a type of arrangement if making an arrangement of that type would not be a reasonable course of action in relation to the provisions of enactments relating to non-domestic rating, having regard in particular to—

(a)whether the substantive results of arrangements of that type are inconsistent with—

(i)any principles on which those provisions are based (whether express or implied), and

(ii)the policy objectives of those provisions;

(b)whether arrangements of that type are intended to exploit any shortcomings in those provisions;

(c)whether arrangements of that type lack economic or commercial substance (other than obtaining an advantage in relation to non-domestic rating).

(3)The regulations may provide that a particular arrangement of a type specified under subsection (1)(a) is not artificial if a determination to that effect is made, in accordance with the regulations and having regard to all the circumstances, by—

(a)a billing authority in Wales, in connection with the authority’s local non-domestic rating list;

(b)the Welsh Ministers, in connection with a central non-domestic rating list for Wales.

(4)In this section “enactments relating to non-domestic rating” means—

(a)this Act,

(b)the Business Rate Supplements Act 2009 (c. 7), and

(c)any subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)) made under those Acts.