GAAR: What advisers need to know

The Finance Act 2013 received Royal Assent on 17 July and, with it, came the introduction of a fundamental change to the way in which tax avoidance arrangements are treated. The General Anti-Abuse Rule (GAAR) is designed to enable HM Revenue & Customs (HMRC) to counteract tax advantages arising from tax arrangements that are deemed abusive and, therefore, unacceptable. The GAAR applies to a wide range of taxes, including those on income and capital gains, inheritance and on corporations. The meaning of ‘tax arrangements’ and ‘tax advantage’ is widely defined in the legislation. Althou...