Section 357YI | Interpretation of section 357YH ^F1

(1)This section applies for the interpretation of section 357YH (and this section).

(2)“Arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

(3)Arrangements are “relevant avoidance arrangements” if their main purpose, or one of their main purposes, is to enable a company to obtain a tax advantage in relation to the application of the charge to tax at the restitution payments rate.

(4)But arrangements are not “relevant avoidance arrangements” if the obtaining of any tax advantages that would (in the absence of section 357YH) arise from them can reasonably be regarded as consistent with wholly commercial arrangements.

(5)“Tax advantage” includes—

(a)a repayment of tax or increased repayment of tax,

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

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

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

(e)the avoidance of an obligation to deduct or account for tax.

(6)In subsection (5)(b) and (c) the references to avoidance or reduction include an avoidance or reduction effected by receipts accruing in such a way that the recipient does not bear tax on them as restitution interest under this Part.