General anti-abuse rule (GAAR) meaning

In this issue Budgets and Finance Bills International Taxes management and litigation Companies and corporation tax Anti-avoidance Employment taxes Individuals and income tax Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Budgets and Finance Bills Autumn Budget 2024 The Chancellor of the Exchequer, Rachel Reeves, will present the Autumn Budget on Wednesday 30 October 2024. As is our custom, we will produce overnight analysis of the principal business tax measures announced, which will be published on the morning of Thursday 31 October 2024. International Jersey adopts legislation to implement Pillar 2 from 2025 Jersey has enacted legislation to introduce a Pillar 2 Income Inclusion Rule and a multinational corporate income tax from 2025, honouring Jersey’s commitment to implement the OECD’s global minimum tax framework for large in-scope multinational groups. See: LNB News 24/10/2024 1. New corporate re-domiciliation report published...

FORTHCOMING CHANGE: Following the Autumn Budget 2024, the government initiated an independent review into the loan charge. Launched on 23 January 2025, the review’s remit was to examine the obstacles preventing people within scope of the loan charge, who have not settled and paid their tax liabilities in full, from reaching agreement with HMRC, and to recommend measures to encourage settlement with HMRC (see News Analysis: Autumn Budget 2024—Independent review of the loan charge). To support this work, a call for evidence—directed at those still affected by the loan charge and their advisers—was issued on 28 March 2025. The Final Report, together with the government’s response, was released at Budget 2025 on 26 November 2025...

The general anti-abuse rule (the GAAR): neutralises—by making adjustments, on a just and reasonable basis, undertaken either by HMRC or by the taxpayer—for the purposes of counteraction any tax advantages that, leaving the GAAR out of account, would otherwise arise from abusive tax arrangements, and has operated since 17 July 2013 (being the date of Royal Assent to the Finance Act 2013 (FA 2013)), except that, for National Insurance contributions (NICs), it has applied only from 13 March 2014 This Practice Note explains: that the GAAR can be applied by taxpayers or by HMRC as appropriate in the circumstances how to determine which adjustments should be made to counteract abusive tax advantages in practice the procedure for counteraction by HMRC, including: the different kinds of notices that HMRC may give to a taxpayer and the separate GAAR procedures linked to such notices the point that, if the taxpayer does not...

The general anti-abuse rule (the GAAR): neutralises, through just and reasonable adjustments made by HMRC or by the taxpayer, as appropriate any tax benefits that, absent the GAAR, would stem from abusive tax arrangements and schemes has been in force from 17 July 2013 (Royal Assent to the Finance Act 2013 (FA 2013)), save that, for National Insurance contributions (NICs), it has only taken effect from 13 March 2014 This Practice Note discusses in detail: the nature and composition of the GAAR advisory panel and why it exists institutionally how the GAAR panel links with the GAAR guidance, together with the function, scope and authority of that guidance the effect of the GAAR panel’s opinions when applying the GAAR not just to the arrangements actually referred, but also to comparable arrangements undertaken by other taxpayers without needing a further panel referral, and in practice and effect the possible consequences and implications of the panel’s opinions ...