The General Anti-Abuse Rule (GAAR), that came into force on 17 July 2013, is one part of the Government's approach to managing the risk of tax avoidance. It has been introduced to strengthen HM Revenue & Customs' (HMRC's) anti-avoidance strategy and help HMRC tackle abusive avoidance. The GAAR legislation defines what are, for its purposes, tax arrangements that are abusive.
But just because something isn't covered by the GAAR doesn't mean it won't be tackled in another way. HMRC will continue to tackle tax avoidance using existing anti-avoidance methods as well as the GAAR, where appropriate.
The GAAR applies to the following taxes:
An independent advisory panel has been set up to give opinions on specific cases and approve the GAAR guidance.
You can download the current guidance from the following links:
Read the GAAR legislation in Part 5 and Schedule 43 of Finance Act 2013:
If you have any further comments about the GAAR, you can email them to HMRC.