Corporation Tax Act 2009 section 864

Tax avoidance arrangements to be ignored

Section 864 requires that any arrangements whose main purpose is to manipulate the intangible fixed assets rules for tax advantage must be disregarded when calculating credits and debits.

• When determining whether a credit or debit should be brought into account for intangible fixed assets, and its amount, any tax avoidance arrangements must be ignored entirely.
• Arrangements count as "tax avoidance arrangements" if a main object is to obtain or inflate a debit, or to avoid or reduce a credit, under the intangible fixed assets rules.
• The definition of "arrangements" is deliberately broad, covering any scheme, agreement or understanding, whether or not it is legally enforceable.
• "Brought into account" means brought into account for corporation tax purposes, so the anti-avoidance rule applies to any tax calculation involving intangible fixed assets.