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GB 55: Arrangements involving tax credits for charitable or other public benefit gifts
or “Rules for tax credits on charitable donations and preventing misuse”
You could also call this:

“Rules to prevent misuse of research and development tax credits”

This law is about stopping people from trying to cheat the system when it comes to research and development tax credits. If you’re part of a plan that’s meant to get around the rules for these tax credits, even if that’s not the main reason for the plan, this law applies to you.

If the tax office thinks you’re trying to cheat, they can reduce the amount of research and development tax credit you’re allowed to get. They can do this even if you weren’t the one who came up with the plan.

The tax office will decide how much to reduce your tax credit by. They’ll look at what they think is fair based on what you’ve done.

Remember, the rules about research and development tax credits are in subpart LY of the law. This section is here to make sure people follow those rules properly and don’t try to find sneaky ways around them.

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Part G Avoidance and non-market transactions
Avoidance: specific: Arrangements involving residential land

GB 56Arrangements involving research and development tax credits

  1. This section applies when an arrangement has a purpose or effect, not being a merely incidental purpose or effect, of defeating the intent and application of subpart LY (Research and development tax credits).

  2. A person’s entitlement to a research and development tax credit is reduced to the amount that the Commissioner thinks appropriate, whether or not the person is a party to the arrangement.

Notes
  • Section GB 56: inserted, on , by section 7 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).