Savings and Investment Manual

SAIM10110 - Relief for interest paid: arrangements minimising risk to borrower: definitions

Definitions

Post-tax advantage

Arrangements will 바카라 사이트榓ppear very likely to produce a post tax advantage바카라 사이트� if one might reasonably assume (ignoring insignificant risk) that the arrangements will, after making the 바카라 사이트榓ppropriate tax adjustments바카라 사이트�, allow the borrower (or a person connected with the borrower) to exit the arrangement with more money than was originally invested by virtue of the interest being eligible for relief.

Appropriate tax adjustments

바카라 사이트楢ppropriate tax adjustments바카라 사이트� are defined in sub-sections (8) and (9) and ensure that the value of the tax relief that would be due (apart from S384A) is taken into account in determining the return to the borrower. Conversely any additional tax due as a result of the arrangements is also taken into account.

The adjustments are made by comparing 바카라 사이트淎바카라 사이트� and 바카라 사이트淏바카라 사이트�. If 바카라 사이트淎바카라 사이트� exceeds 바카라 사이트淏바카라 사이트� the excess is to be deducted from the amount produced and if 바카라 사이트淏바카라 사이트� exceeds 바카라 사이트淎바카라 사이트� the excess is added to that amount. For this purpose A and B are to be computed independently of the other and it is assumed that the relief for interest is not blocked by S384A(1).

바카라 사이트淎바카라 사이트� is the amount of any income tax, capital gains tax or tax under the law of a territory outside the UK to which the borrower becomes liable as a result of the arrangements.

바카라 사이트淏바카라 사이트� is the aggregate amount by which the borrower바카라 사이트檚 liability to income tax and capital gains tax would be reduced in consequence of the arrangements. This includes, but is not limited to a reduction in tax resulting from a claim under the interest relief provisions.

Arrangements designed to reduce tax

Arrangements will seem to have been designed to reduce any tax liability that would have arisen independently of the arrangements if, and only if, it would be reasonable to assume from all or any relevant circumstances that the arrangements or any part of them were so designed. This would, for example, apply if the scheme is a marketed one and the marketing literature indicates that the arrangements are intended to reduce a tax liability that would arise independently of the scheme.

Arrangements

바카라 사이트楢rrangements바카라 사이트� has a wide meaning in this section including 바카라 사이트榓ny number of agreements, understandings, schemes, transactions or other arrangements (whether or not legally enforceable) and related transactions. These are defined as any transactions (which need not be between the same parties as the arrangements) that it is reasonable to assume would not have been entered into independently of the arrangements.