Corporation Tax Act 2009 section 1169

Artificially inflated claims for relief or tax credit

Section 1169 is an anti-avoidance provision that prevents companies from artificially inflating their claims for contaminated land tax relief or related tax credits through contrived arrangements.

• Any transaction attributable to arrangements entered into wholly or mainly for a disqualifying purpose must be disregarded when calculating relief or tax credits under Part 14
• A disqualifying purpose exists where the main object, or one of the main objects, of the arrangements is to obtain relief or tax credits to which the company would not otherwise be entitled, or to obtain a greater amount than it would otherwise receive
• The reliefs and credits protected by this provision include Chapter 2 relief, land remediation tax credits, life assurance business relief under sections 1161 and 1162, and BLAGAB tax credits under section 1164
• Arrangements are broadly defined to include any scheme, agreement or understanding, whether or not it is legally enforceable