Corporation Tax Act 2010 section 356OK

Arrangements for avoiding tax

Section 356OK is an anti-avoidance provision that allows HMRC to counteract tax advantages obtained through arrangements whose main purpose (or one of whose main purposes) is to reduce corporation tax on profits arising under this Part of the Act.

• Where an arrangement has been entered into with a main purpose of obtaining a corporation tax advantage on profits treated as trading profits under this Part, that advantage can be counteracted through adjustments.
• The provision also catches tax advantages obtained through double taxation treaty provisions, but only where the advantage is contrary to the object and purpose of the relevant treaty provisions.
• Adjustments to counteract the tax advantage may be made by either HMRC or the company itself, by way of assessment, modification of an assessment, amendment or disallowance of a claim, or otherwise.
• A "relevant tax advantage" means a tax advantage relating to corporation tax that is charged (or would be charged but for the advantage) on amounts treated as trading profits under this Part of the Act.