Corporation Tax Act 2009 section 931V

Meaning of "scheme" and "tax advantage scheme"

Section 931V defines the terms "scheme" and "tax advantage scheme" for the purposes of Part 9A of the Corporation Tax Act 2009, which deals with company distributions.

• A "scheme" is defined very broadly to include any arrangements or understanding of any kind, whether or not they are legally enforceable, and whether they involve one transaction or several.
• A "tax advantage scheme" is a scheme where one of the main purposes is to obtain a tax advantage that is more than negligible.
• The definition of "tax advantage" is taken from section 1139 of the Corporation Tax Act 2010, which provides a standard meaning used across corporation tax legislation.
• These definitions are relevant when determining whether anti-avoidance provisions in Part 9A apply to distributions received by a company.