Income Tax (Earnings and Pensions) Act 2003 section 41Z

Artificial arrangements to be disregarded

Section 41Z is an anti-avoidance provision that requires artificial arrangements designed to gain or increase overseas workday relief to be disregarded when determining eligibility for that relief.

• Any arrangements whose main purpose (or one of whose main purposes) is to obtain overseas workday relief to which the individual would not otherwise be entitled must be disregarded.
• Arrangements aimed at securing a greater amount of relief than the individual would otherwise be entitled to must also be disregarded.
• The provision applies to the classification of general earnings, third party income and securities income as "qualifying" income for the purposes of the overseas workday relief chapter.
• "Arrangements" is defined very broadly to include any agreement, understanding, scheme, transaction or series of transactions, whether or not they are legally enforceable.