Corporation Tax Act 2009 section 1218ZCN

Transactions not entered into for genuine commercial reasons

Section 1218ZCN requires that transactions linked to non-commercial arrangements are disregarded when calculating museums and galleries exhibition tax relief.

• Any transaction attributable to arrangements not entered into for genuine commercial reasons must be ignored when determining museums and galleries exhibition tax relief.
• This provision targets transactions designed to artificially inflate the amount of a relief claim, such as inflating expenditure figures.
• The rule applies to non-commercial arrangements other than tax avoidance arrangements, which are dealt with separately under their own provisions.
• The definitions of "arrangements" and "tax avoidance arrangements" follow those used in the related tax avoidance arrangements provision.