Corporation Tax Act 2010 section 235

No tax avoidance purpose

Section 235 denies community investment tax relief (CITR) where the investment forms part of a scheme or arrangement designed mainly to avoid tax.

• An investment will not qualify for CITR if it is made as part of a tax avoidance scheme or arrangement.
• The test applies where tax avoidance is the main purpose, or one of the main purposes, of the scheme or arrangement.
• This is an anti-avoidance provision intended to ensure that CITR is only available for genuine community investments.
• If the condition is breached, the entire tax relief claim in respect of that investment is denied.