Section 61WA | Anti-avoidance ^F1F2

(1)This section applies if in any case at least one relevant person in a chain participates in a relevant avoidance arrangement.^F1F2

(2)An arrangement is a “relevant avoidance arrangement” if its main purpose, or one of its main purposes, is to secure a tax advantage by securing that at least one of the conditions mentioned in section 61O or 61P is not met in relation to an intermediary.^F1F2

(3)Section 61N(3) has effect as if the reference to the fee-payer were a reference to the participating person, but—^F1F2

(a)section 61N(4) continues to have effect as if the reference to the fee-payer were a reference to the deemed employer, and^F1F2

(b)Step 1 of section 61Q(1) continues to have effect as referring to the chain payment made by the deemed employer.^F1F2

(4)The participating person is—^F1F2

(a)in a case where only one relevant person participates in the arrangement, that person;^F1F2

(b)in any other case the highest relevant person in the chain who participated in the arrangement and from whom HMRC considers there is a realistic prospect of recovering, within a reasonable period, the amount of tax that would have been paid (or not repaid) in the absence of the arrangement.^F1F2

(5)Subsection (3) has effect even though that may involve a participating person being treated as both employer and employee in relation to the deemed employment under section 61N(3).^F1F2

(6)In this section—^F1F2

“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

“deemed employer” means a person who would, but for this section, be treated by section 61N(3) as making a payment to the worker;

“relevant person” means—

(a)the worker;

(b)a person who is resident in the United Kingdom or who has a place of business in the United Kingdom;

“tax” means income tax (and “tax advantage” is to be construed accordingly”);

“tax advantage” includes—

(a)avoidance or reduction of a charge to tax or an assessment to tax,

(b)repayment or increased repayment of tax,

(c)avoidance of a possible assessment to tax, and

(d)deferral of a payment of tax or advancement of a repayment of tax.