Arrangements are "tax arrangements" if, having regard to all the circumstances, it would be reasonable to conclude that the obtaining of a tax advantage was the main purpose, or one of the main purposes, of the arrangements.
Tax arrangements are "abusive" if they are arrangements the entering into or carrying out of which cannot reasonably be regarded as a reasonable course of action in relation to the relevant tax provisions, having regard to all the circumstances including—
Where the tax arrangements form part of any other arrangements regard must also be had to those other arrangements.
Each of the following is an example of something which might indicate that tax arrangements are abusive—
but in each case only if it is reasonable to assume that such a result was not the anticipated result when the relevant tax provisions were enacted.
The fact that tax arrangements accord with established practice, and HMRC had, at the time the arrangements were entered into, indicated its acceptance of that practice, is an example of something which might indicate that the arrangements are not abusive.
The examples given in subsections (4) and (5) are not exhaustive.