546A Restrictions on allowable losses.

(1) In this section—

“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

“tax advantage” means—

(a) relief or increased relief from tax,

(b) repayment or increased repayment of tax,

(c) the avoidance or reduction of a charge to tax or an assessment to tax, or

(d) the avoidance of a possible assessment to tax;

“tax” means capital gains tax or corporation tax on chargeable gains.

(2) For the purposes of the Capital Gains Tax Acts, a loss shall not be an allowable loss if—

(a) it accrues to the person directly or indirectly in consequence of, or otherwise in connection with, any arrangements, and

(b) the main purpose, or one of the main purposes, of the arrangements is to secure a tax advantage.

(3) For the purposes of subsection (2), it shall not be relevant—

(a) whether or not the loss accrues at a time when there are no chargeable gains from which it could otherwise have been deducted, or

(b) whether or not the tax advantage is secured for the person to whom the loss accrues or for any other person.