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HMRC internal manual

Business Income Manual

Definitions: Relevant tax advantage

The term ‘relevant tax advantage’ is used at various points of the legislation.

Corporation Tax

‘Tax advantage’ has the meaning given in Section 1139 of CTA 2010.

A relevant tax advantage is a tax advantage in relation to the corporation tax to which the company is chargeable, or would be chargeable without the tax advantage, by virtue of Section 5(2A) CTA 2009 or Part 8ZB of CTA 2010.

A relevant tax advantage includes exploiting a double tax arrangement in a way which was not intended by a treaty. For example, if on or after 16 March 2016, a company were to migrate with a view to sheltering the development profit from the new charge, a relevant tax advantage would arise.

The adjustments which should be used to counter the relevant tax advantage include assessment, the modification of an assessment, amendment or disallowance of a claim of another method.

Income Tax

‘Tax advantage’ has the meaning given in Section 6A(6) ITTOIA 2005.

A relevant tax advantage is a tax advantage in relation to the income tax to which the person is chargeable, or would be chargeable without the tax advantage, by virtue of Section 6(1A) ITTOIA 2005 or Part 9A of ITA 2007.

A relevant tax advantage includes exploiting a double tax arrangement in a way which was not intended by the treaty.

The adjustments which should be used to counter the relevant tax advantage include assessment, the modification of an assessment, amendment or disallowance of a claim or another method.