Section 1205 Artificially inflated claims for additional deduction or film tax credit

United Kingdom

(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—

C1(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—

C2(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.

Annotations

Modifications

C1: S. 1205(1)(a) modified by 2010 c. 4, s. 357RE (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)
C2: S. 1205(2)(a) modified by 2010 c. 4, s. 357RE (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)

Notes on Part 15

Modifications

C1: Pt. 15 applied (with modifications) by S.I. 2007/1050, regs. 3-12 (as amended (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 2 para. 131 (with Sch. 2 Pts. 1, 2))