The GAAR has been introduced to help HMRC tackle tax avoidance, reports chartered accountant Harris & Co. It will apply to tax arrangements entered into on or after Royal Assent of Finance Bill 2013. Guidance has been published to support the legislation.
The GAAR legislation defines what are, for its purposes, tax arrangements that are abusive.
The GAAR applies to the following taxes:
•Corporation Tax (including amounts chargeable or treated as Corporation Tax)
•Capital Gains Tax
•Petroleum Revenue Tax
•Stamp Duty Land Tax
•Annual Residential Property Tax
An independent advisory panel has been set up to give opinions on specific cases and approve the GAAR guidance.
Further information including the latest guidance is available from HMRC.