CA94810 - Structures and buildings allowance (SBA): anti-avoidance: avoidance arrangements

CAA01/S270IB

If avoidance arrangements exist in relation to a building, and a person would, but for the provision in CAA01/S270IB, obtain a tax advantage under CAA01/PART2A, the tax advantage is to be counteracted.

The person with the relevant interest in the building does not need to be party to the avoidance arrangements for the anti-avoidance rule to apply.

For SBA, “avoidance arrangements” are ones whose main purpose, or one of the main purposes, is to obtain a tax advantage under CAA01/PART2A.

This includes the obtaining of an allowance that is in any way more favourable to a person than the one that would otherwise be obtained.

“Arrangements” includes any agreement (including an agreed valuation), understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

The rescission of a contract that was entered into before 29 October 2018 so that a new contract can be entered into on or after 29 October 2018 might be an avoidance arrangements if the purpose of the rescission is to obtain SBA. A rescission of a contract includes its revocation or cancellation.

Counteraction

The counteraction is achieved by making such adjustments as are just and reasonable.

The adjustments made to counteract the tax advantage may affect the tax treatment of persons other than the person in relation to whom the tax advantage is counteracted.