Section 1169 | Artificially inflated claims for relief or tax credit

(1)To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it is to be disregarded for the purposes mentioned in subsection (2).

(2)Those purposes are determining for an accounting period the amount of—

(a)any relief to which a company is entitled under Chapter 2,

(b)any land remediation tax credits to which a company is entitled under section 1151,

(c)any relief to which a company carrying on basic life assurance and general annuity business is entitled under section 1161 or 1162, and

(d)any BLAGAB tax credits to which such a company is entitled under section 1164.

(3)Arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a company to obtain—

(a)relief under Chapter 2 to which the company would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled,

(b)a land remediation tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled,

(c)relief under section 1161 or 1162 to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled, or

(d)a life assurance company tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled.

(4)In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.