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These provisions apply for corporation tax purposes. For details of the income tax regime see ·¡1.1417–E1.1419.

Even if a tax advantage is obtained in one of the prescribed circumstances (see E1.1443), HMRC cannot take counteraction if the taxpayer can show:

1. Ìý

   •ÌýÌýÌýÌý that the transaction or transactions concerned were carried out either for genuine commercial reasons or in the ordinary course of making or managing investments, and

2. Ìý

   •ÌýÌýÌýÌý that none of them had as their main objects, or one of their main objects, to enable tax advantages to be obtained¹.

It is also important to note that these are separate tests and it is entirely possible that transactions are carried out for genuine commercial reasons or in the ordinary course of making or managing investments, while also having tax avoidance as a main object, as in Trustees of the Sema Group Pension Scheme² (see below).