The general anti-abuse rule (GAAR) applies with effect from 17 July 2013 and it is intended to counteract tax advantages that would, ignoring the GAAR, arise from abusive tax arrangements. Note that the Scotland and Wales have their own versions of the GAAR in respect of devolved taxes, see A1.535 (Scotland) and A1.543 (Wales).
For an overview of the GAAR, see A7.411.
The commentary below covers counteractions under the GAAR and protective GAAR notices (which replaced provisional counteraction notices with effect from 22 July 2020).
Counteractions under the GAAR—overview
Where tax arrangements are considered abusive, the tax advantages arising from them are counteracted by making adjustments which impose or increase the tax liability where there would otherwise be either none or a lower liability.
There ways in which tax advantages can be counteracted under the GAAR are by:
- Ìý
•ÌýÌýÌýÌý a self-assessment adjustment by the taxpayer
- Ìý
•ÌýÌýÌýÌý filing of accounts and payment of tax (in the case of IHT), or
- Ìý
•ÌýÌýÌýÌý through counteraction by HMRC
Such adjustments may be made in
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:48