Commentary

A7.411 GAAR—Scope and definitions

Administration and compliance

A7.411 GAAR—Scope and definitions

A7.411 GAAR—Scope and definitions

The GAAR is another element of HMRC's approach to tackling tax avoidance and is not intended to replace or supersede targeted anti-avoidance rules or any obligations under DOTAS (see A7.410). It has effect generally in relation to any tax arrangements entered into on or after 17 July 2013. Where the tax arrangements under consideration form part of other arrangements entered into before 17 July 2013, those other arrangements should be ignored in determining whether the tax arrangements in question are abusive1.

The GAAR provides for the counteraction of tax advantages arising from arrangements that are abusive and applies to2:

  1.  

    •     income tax

  2.  

    •     corporation tax (including amounts chargeable/treated as corporation tax)

  3.  

    •     capital gains tax

  4.  

    •     petroleum revenue tax

  5.  

    •     inheritance tax

  6.  

    •     stamp duty land tax

  7.  

    •     annual tax on enveloped dwellings

  8.  

    •     National Insurance contributions (NICs), from 13 March 2014 (see E8.1160)3

  9.  

    •     diverted profits tax, from 1 April 2015 (see D2.701)4

  10.  

    •     the apprenticeship levy, from 6 April 2016 (see E4.11300)5

HMRC's guidance on the GAAR is available on

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