Section 416E Artificially inflated claims for first-year allowancesF1F2
To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for a chargeable period the amount of any first-year allowance to which a person is entitled.
For the purposes of this section, 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 person to obtain—
a first-year allowance to which he would not otherwise be entitled, or
a first-year allowance of a greater amount than that to which he would otherwise be entitled.
In this section “ arrangements ” includes any scheme, agreement or understanding, whether or not legally enforceable.
Annotations
Textual amendments
- F1
S. 416D and preceding crossheading inserted (with effect as mentioned in s. 63(3) of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 10
- F2
S. 416E inserted (with effect as mentioned in s. 63(3) of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 11