Corporation Tax Act 2010 section 357YI

Interpretation of section 357YH

Section 357YI defines key terms used in the anti-avoidance rule for restitution interest, including what counts as "arrangements", "relevant avoidance arrangements", and "tax advantage", while carving out genuinely commercial arrangements from the scope of the rule.

• "Arrangements" is defined very broadly to include any agreement, understanding, scheme, transaction or series of transactions, whether or not they are legally enforceable.
• Arrangements are "relevant avoidance arrangements" if a main purpose is to enable a company to obtain a tax advantage in relation to the restitution payments rate charge — but arrangements whose tax advantages are consistent with wholly commercial arrangements are excluded.
• "Tax advantage" covers a wide range of benefits including tax repayments, avoidance or reduction of tax charges or assessments, deferral of tax payments, advancement of repayments, and avoidance of obligations to deduct or account for tax.
• References to avoidance or reduction of a tax charge or assessment also cover situations where receipts accrue in a way that means the recipient does not bear tax on them as restitution interest.