Section 1216CL Artificially inflated claims for additional deduction or tax creditF1

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 television 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 television 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

Textual amendments

F1: Pt. 15A inserted (17.7.2013 for specified purposes, 19.7.2013 in so far as not already in force, and with effect in accordance with Sch. 16 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 16 paras. 1, 2; S.I. 2013/1817, art. 2(1)

Modifications

C1: S. 1216CL(1)(a) modified by 2010 c. 4, s. 357SE (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. 1216CL(2)(a) modified by 2010 c. 4, s. 357SE (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)