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 procedures relating to the counteraction of the tax advantage. For a list of the taxes covered by the GAAR and the definition of tax advantage, see A7.411
The GAAR Advisory Panel referenced in the commentary below is an independent committee that reviews and approves HMRC's guidance on the GAAR. It also provides opinions on individual cases referred to it1. For Panel opinions, see A7.417.
Procedural requirements for counteractions by HMRC
HMRC can make an adjustment before the GAAR procedural requirements discussed below have been satisfied. However, the effect of the adjustment is suspended until the GAAR procedural requirements have been completed2.
Counteractions can be made by a taxpayer. However
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