CG47026 - Targeted anti-loss buying rule - is a tax advantage a main purpose?

There is no one factor that determines whether the obtaining of a tax advantage is a main purpose of an arrangement. All of the circumstances in which the arrangements were entered into need to be taken into consideration. Such circumstances might include:

• the overall commercial objective (this should be considered from the perspective of not only the individual participants but also from any wider corporate group to which they belong - for these purposes a commercial objective does not include tax motivated reasons);
• whether this objective is one which the parties involved might ordinarily be expected to have, and which is genuinely being sought;
• whether the objective is being fulfilled in a straightforward way or
• whether the introduction of any additional complex or costly steps would have taken place were it not for the tax advantage that could be obtained.