Chancellor creates 60% penalty for GAAR tax cases

The GAAR was introduced in 2013 as part of the government's attempt to crack down on tax abuse. It applies to taxes such as income tax, capital gains tax, and inheritance tax and gives HMRC powers to claim money back from arrangements it deems abusive. GAAR takes priority over other parts of tax legislation and sits alongside several hundred targeted anti-avoidance rules (TAAR) which apply to particular tax provisions. The government will also introduce new measures for those who persistently enter into tax avoidance schemes that are defeated by HMRC. The measures include a spec...