Section 81C Artificial tax avoidance arrangementsF1

(1)

For the purposes of this Part, a tax avoidance arrangement is ““artificial”” if the entering into or carrying out of it is not a reasonable course of action in relation to the provisions of Welsh tax legislation applying to the arrangements.

(2)

In determining whether the tax avoidance arrangement is artificial, regard may in particular be had—

(a)

to any genuine economic or commercial substance to the arrangement (other than the obtaining of a tax advantage);

(b)

as to whether the arrangement results in an amount of tax chargeable that it is reasonable to assume was not the anticipated result when the relevant provision of Welsh tax legislation was enacted.

(3)

But an arrangement is not artificial if, at the time it was entered into or carried out—

(a)

the arrangement was consistent with generally prevailing practice, and

(b)

WRA had indicated its acceptance of that practice.

(4)

Where a tax avoidance arrangement forms part of any other arrangements, regard must also be had to those other arrangements in determining whether the tax avoidance arrangement is artificial.

(5)

In this section, “"Welsh tax legislation”” means—

(a)

the Welsh Tax Acts, and

(b)

any subordinate legislation (within the meaning of section 21 of the Interpretation Act 1978 (c. 30)) made under those Acts.

Annotations

Textual amendments

F1: Pt. 3A inserted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), ss. 66, 81(2)(3); S.I. 2018/34, art. 3

Notes on the whole Act

Textual amendments

F1: Word in Act substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 21

Notes on Part 3A

Textual amendments

F2: Words in Pt. 3A heading inserted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 34