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CAA01/S270IB

If avoidance arrangements exist in relation to a building, and a person would, but for the provision in CAA01/S270IB, obtain a tax advantage under CAA01/PART2A, the tax advantage is to be counteracted.

»Ê¹ÚÌåÓýapp person with the relevant interest in the building does not need to be party to the avoidance arrangements for the anti-avoidance rule to apply.

For SBA, “avoidance arrangements� are ones whose main purpose, or one of the main purposes, is to obtain a tax advantage under CAA01/PART2A.

This includes the obtaining of an allowance that is in any way more favourable to a person than the one that would otherwise be obtained.

“Arrangements� includes any agreement (including an agreed valuation), understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

»Ê¹ÚÌåÓýapp rescission of a contract that was entered into before 29 October 2018 so that a new contract can be entered into on or after 29 October 2018 might be an avoidance arrangements if the purpose of the rescission is to obtain SBA. A rescission of a contract includes its revocation or cancellation.

Counteraction

»Ê¹ÚÌåÓýapp counteraction is achieved by making such adjustments as are just and reasonable.

»Ê¹ÚÌåÓýapp adjustments made to counteract the tax advantage may affect the tax treatment of persons other than the person in relation to whom the tax advantage is counteracted.