Section 1205 — Corporation Tax Act 2009: Artificially inflated claims for additional deduction or film tax credit

Artificially inflated claims for additional deduction or film tax credit 1205 1 So far as a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it is to be ignored in determining for any period—

a any additional deduction which a company may make under this Chapter, and b any film tax credit to be given to a company.

2 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 an additional deduction under this Chapter to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled, or b a film tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled. 3 “ Arrangements ” includes any scheme, agreement or understanding, whether or not legally enforceable.