BKM504600 - The Code commitments – tax planning: is the transaction within the GAAR?

For arrangements:

• that the General Anti-Abuse Rule (GAAR) Advisory Panel have concluded are not a reasonable course of action, and
• where the designated officer of HMRC has given a notice of proposed counteraction under FA13/SCH43/PARA12; then

as set out in the Governance Protocol, undertaking or promoting such a transaction is a breach of the Code, and HMRC will not need to look any further at the intentions of Parliament.

Examples of when the GAAR might or might not apply can be found via the following link https://www.gov.uk/government/publications/tax-avoidance-general-anti-abuse-rules.

The GAAR will not be considered in responses to pre-transaction approaches under the Code.

More information on potential GAAR transactions and HMRC’s approach to the Code around such transactions can be found in BKM506400.