# Capital Allowances Act 2001, Section 212M: Unallowable purpose


(1) The qualifying change has an unallowable purpose if the main purpose, or one of the main purposes, of change arrangements is to obtain a relevant tax advantage (for any person).
(2) “Change arrangements” means any arrangements made to bring about, or otherwise connected with, the qualifying change; and “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
(3) “Obtain a relevant tax advantage” means become entitled to a reduction in profits, or an increase in losses, for the purposes of corporation tax in consequence of a claim to allowances in respect of qualifying expenditure in respect of the relevant plant and machinery or qualifying expenditure within section 212K(3).

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Source: https://www.legislation.gov.uk/ukpga/2001/2/section/212M (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/section-212M
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.