Taxation (International and Other Provisions) Act 2010 section 83

Schemes and arrangements referred to in section 82(4)

Section 83 identifies which types of schemes or arrangements are targeted by the anti-avoidance rules in section 82(4), distinguishing between ordinary schemes and those designed to exploit underlying tax credits on foreign dividends.

• A scheme or arrangement falls within the anti-avoidance rules if it is not an underlying-tax scheme and one or more of sections 84 to 88 apply to it.
• An "underlying-tax" scheme is one whose main purpose (or one of its main purposes) is to cause underlying tax on a dividend from a foreign company to be credited against a person's UK tax liability.
• An underlying-tax scheme falls within these rules if sections 84 to 88 would apply to it on the hypothetical assumption that the foreign company paying the dividend were instead resident in the UK.
• The assumption of UK residence does not require any change to where the foreign company actually carries on its business activities.