Section 1169 — Corporation Tax Act 2009: Artificially inflated claims for relief or tax credit

Artificially inflated claims for relief or tax credit 1169 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.