The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The GAAR (general anti-abuse rule) is a general approach to tackling tax avoidance. It seeks to counteract tax advantages arising from abusive tax arrangements. The counteraction is exercised by making adjustments on a just and reasonable basis. This guidance note refers to the GAAR as the ‘UK GAAR’ to distinguish the provisions from the Scottish general anti-avoidance rule (Scottish GAAR) which came in to effect on 1 April 2015 in relation to the devolved taxes. See the Scottish general anti-avoidance rule (Scottish GAAR) guidance note.
The UK GAAR applies to arrangements entered into on or after 17 July 2013. This includes arrangements that are part of wider arrangements entered into before that date, although the GAAR cannot be applied to such parts of the wider arrangements entered into before that date. Any such wider arrangements are, however, to be taken into account if they would help establish that GAAR should not be applied.
The UK GAAR takes priority over any other part of tax legislation and forms part of the UK’s anti-avoidance framework.
The taxes covered by the UK GAAR are:
diverted profits tax
capital gains tax
petroleum revenue tax
stamp duty land tax
annual residential property tax
the apprenticeship levy with effect from 15 September 2016
FA 2013, s 206(3)
The UK GAAR also applies to national insurance contributions with effect from 13 March 2014. See Simon’s Taxes A2.126 for more on the scope of the UK GAAR.
As noted above, the Scottish GAAR applies to the devolved taxes. The devolved taxes which are presently land and buildings transaction tax (LBTT) and Scottish landfill tax (SLFT). The number of devolved taxes will increase once the recommendations of the Smith Commission are implemented. The Scottish rate of income tax is not a devolved tax and remains under the control of HMRC. Consequently, it is not within the Scottish GAAR.
The Scottish provisions are not
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