Taxation (International and Other Provisions) Act 2010 section 88

Section 83(2) and (4): schemes involving tax-deductible payments

Section 88 identifies when a scheme or arrangement involves tax-deductible payments, which is relevant to the application of the double taxation relief rules in section 83.

• The section applies where a scheme includes someone making a tax-deductible payment and receiving qualifying consideration in return
• A payment is "relevant" if it can be deducted in calculating a person's income for income tax or corporation tax, or in calculating chargeable gains for capital gains tax
• Consideration is "qualifying" if it includes a payment back to the payer (or a connected person) that is subject to tax in a territory outside the United Kingdom
• The term "payment" is broadly defined to include transfers of money's worth, not just cash payments