(January 30, 2015) 

On January 30, 2015 the HM Revenue & Customs has issued an updated version of its GAAR Guidance. The updated GAAR Guidance has effect from January 30, 2015.

 

As of  July 17, 2013 the GAAR applies to the following taxes: 

• Income Tax
• Corporation Tax (including amounts chargeable or treated as Corporation Tax)
• Capital Gains Tax
• Inheritance Tax
• Petroleum Revenue Tax
• Stamp Duty Land Tax
• Annual Tax on Enveloped Dwellings

From march 2014 the GAAR also applies to National Insurance contributions.

 

The (updated) GAAR Guidance consist out of 5 Parts (Part A – E).

 

Part A – Purpose and status of the guidance

 

Part B – Summary of what the GAAR is designed to achieve and how it operates to achieve it 

·         Part I – What the GAAR is designed to achieve

o        Background to the introduction of the GAAR

o        The fundamental approach of the GAAR

o        The target of the GAAR

o        What the GAAR is not targeted at

o        International tax arrangements

o        The GAAR and the rest of the tax rules

o        The GAAR and other statutory anti-avoidance provisions

o        The GAAR and HMRC’s right to tackle tax avoidance using other provisions

·         Part II – How the GAAR is designed to operate

o        Taxes to which the GAAR applies

o        Tax arrangements

o        How to identify ’abusive’ arrangements

o        Taxpayer safeguards

o        Counteraction and consequential adjustments

o        Management of the GAAR by HMRC officials

o        The GAAR and self-assessment

o        The GAAR and penalties

o        Clearances

o        When the GAAR rules come into force

 

Part C – Specific points 

·         Key concepts

·         Tax advantage

·         Tax arrangements

·         Arrangements

·         Abusive

·         Counteracting the tax advantage

·         Consequential relieving adjustments

·         Proceedings at a tribunal or in court

·         Priority of the GAAR legislation

·         Commencement of the GAAR legislation

·         Disclosure of tax avoidance schemes (DOTAS)

·         Code of Practice on Taxation for Banks

 

Part D – Examples 

·         Part I – Background to the examples

·         Part II – Corporation tax

·         Part III – Income tax

·         Part IV – Capital gains tax

·         Part V – PAYE & NICs

·         Part VI – Inheritance tax

·         Part VII – Stamp duty land tax

·         Part VIII – Commencement

 

Part E – GAAR procedure 

·         Application of the GAAR

·         Counteraction by the taxpayer

·         Counteraction by HMRC

·         The Advisory Panel

·         Counteracting tax advantages

·         Administration of the GAAR for different taxes

·         Consequential adjustments

·         Proceedings before a court or tribunal in connection with the GAAR

 

The Guidance as published on the website GOV.UK is divided over 3 documents.

 

Click here to be forwarded to the first document containing Part A (Purpose and status of the guidance), Part B (Summary of what the GAAR is designed to achieve and how it operates to achieve it) & Part C (Specific points).

 

Click here to be forwarded to the first document containing Part D (Examples)

 

Click here to be forwarded to the first document containing Part E (GAAR procedure).

 

Click here to be forwarded to the news release that was published on GOV.UK with respect to the issuance of the updated Guidance. The news release contains links to the three documents mentioned above.

 

 

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