Corporation Tax Act 2009 section 698B

Counteracting effect of avoidance arrangements

Section 698B provides an anti-avoidance rule that allows HMRC to counteract any derivative-related tax advantages arising from relevant avoidance arrangements by making just and reasonable adjustments to credits and debits under the derivative contracts rules.

• Any derivative-related tax advantages arising from relevant avoidance arrangements must be counteracted through just and reasonable adjustments to the credits and debits brought into account under Part 7 (derivative contracts)
• Adjustments can be made by way of an assessment, modification of an assessment, amendment or disallowance of a claim, or by any other means
• These adjustments may be made by HMRC officers or by the company itself
• The key terms "relevant avoidance arrangements" and "derivative-related tax advantage" are defined in section 698C