Section 86 | Section 83(2) and (4): schemes about claims or elections etc

(1)This section applies to a scheme or arrangement if ...—^F1

(a)a step is taken by a participant, or

(b)a step that could have been taken by a participant is not taken,

and that action or failure to act has the effect of increasing, or giving rise to, a claim by a participant for an allowance by way of credit under this Part.

(2)The steps mentioned in subsection (1) are steps that may be taken—

(a)under the law of any territory, or

(b)under double taxation arrangements made in relation to any territory.

(3)The steps mentioned in subsection (1) include—

(a)claiming, or otherwise securing the benefit of, reliefs, deductions, reductions or allowances, and

(b)making elections for tax purposes.

(3A)Reference in subsection (1) to a step that is taken or not taken by a participant includes one that was taken or not taken by a participant before the scheme or arrangement was made.^F2

(3B)The reason for taking or not taking a step does not matter so long as it has the effect mentioned in subsection (1).^F2

(4)In subsection (1) “participant” means a person who is party to, or concerned in, the scheme or arrangement.