Section 88 | Section 83(2) and (4): schemes involving tax-deductible payments

(1)This section applies to a scheme or arrangement if the scheme or arrangement includes—

(a)the making by a person (“P”) of a relevant payment or payments, and

(b)the giving, in respect of the payment or payments, of qualifying consideration.

(2)For the purposes of subsection (1), a payment is a “relevant payment” if all or part of it may be brought into account—

(a)in calculating P's income for the purposes of income tax or corporation tax, or

(b)in calculating P's chargeable gains for the purposes of capital gains tax.

(3)For the purposes of subsection (1), consideration is “qualifying consideration” if—

(a)all or part of it consists of a payment made to P or a person connected with P, and

(b)tax is chargeable in respect of the payment under the law of a territory outside the United Kingdom.

(4)In this section “payment” includes a transfer of money's worth.

(5)For the purposes of this section, whether a person is connected with another is determined in accordance with section 1122 of CTA 2010.