D1.927 Corporate capital losses anti-avoidance—contrived creation of a capital loss
A targeted anti-avoidance rule ('TAAR' 1) applies to losses of all persons. It provides that an allowable loss does not include a loss that accrues to a company directly or indirectly in consequence of, or in connection with, any 'arrangements' and the main purpose, or one of the main purposes, of the arrangements is to secure a tax advantage2, whether this is in respect of capital gains tax, corporation tax or income tax3. For this restriction of an allowable loss, it is not necessary for the loss to accrue at a time when there are capital gains against which the loss could have been set, and the tax advantage may be obtained by any person4.
'Arrangements' include any agreement, understanding, scheme, transactions or series of transactions, whether or not legally enforceable5.
For the purpose of these provisions, a 'tax advantage' means6:
(a) relief or increased relief from tax
(b) repayment or
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