[F1289EAnti-avoidanceU.K.
(1)This section applies if conditions A to C are met.
(2)Condition A is that, pursuant to arrangements, an amount—
(a)is paid or reimbursed to an employee in respect of expenses, or
(b)is treated as earnings of an employee as a result of the provision of a benefit,
which, in the absence of this section, would have been exempt from income tax.
(3)Condition B is that, in the absence of those arrangements, the employee would have received a greater amount of general earnings or specific employment income in respect of which—
(a)tax would have been chargeable, or
(b)national insurance contributions would have been payable (whether by the employee or another person).
(4)Condition C is that the main purpose, or one of the main purposes, of the arrangements is the avoidance of tax or national insurance contributions.
(5)If this section applies—
(a)the exemption conferred by section 289A does not apply in respect of the amount paid or reimbursed as mentioned in subsection (2)(a), and
(b)the exemption conferred by section 289D does not apply in respect of the amount treated as earnings as mentioned in subsection (2)(b).
(6)In this section “arrangements” includes any scheme, transaction or series of transactions, agreement or understanding, whether or not legally enforceable.]
Textual Amendments
F1Pt. 4 Ch. 7A inserted (with effect in accordance with s. 11(2) of the amending Act) by Finance Act 2015 (c. 11), s. 11(1)