News

Tax Avoidance – when does it become ‘abuse’?

  • July 24, 2013
  • By Hunters Law

Chief Executives of public companies seem to be grilled about ‘abusive’ tax avoidance by MPs on a daily basis. Tax avoidance schemes used by celebrities are splashed over the front pages. Now, the Government has introduced a ‘General Anti-Abuse Rule’ (‘GAAR’) to tackle it. Tax avoidance has never been so topical.

On 17th July, the Finance Bill 2013 received Royal Assent, meaning the GAAR is now in force.  GAAR’s purpose is to prevent tax advantages resulting from ‘abusive tax arrangements’, and sets out guidance on what this means.  While the scope of GAAR will become more clearly defined in time, it is a fundamentally different approach from previous ‘anti-avoidance’ legislation to address this high-profile issue.  Courts can now potentially override tax rules if they find an arrangement to be ‘abusive’, so the grey area between what is ‘avoidance’ and what is ‘abusive’ will need extra scrutiny from advisors and clients alike.

The Finance Act 2013 has also introduced significant other changes affecting private individuals, notably the Statutory Residence Test (which provides some clarity to those unsure if they are tax-resident), provisions to deter the holding of high-value residential properties within companies, and conditions and restrictions concerning the treatment of liabilities for inheritance tax purposes for deaths on or after 17th July.

If you would like any further information on how these changes might affect you, please contact the partner at Hunters having responsibility for your legal matters, or send an email stating the nature of your query to the following address: info@hunters-solicitors.co.uk

Related News

Jun 22, 2021
Jo Carr-West and Lara Barton discuss CGT for divorcing couples in WealthBriefing’s Family Wealth Report
Jun 21, 2021
Harriet Murray examines the analysis of a Wealth Tax in relation to the circumstances of the COVID-19 crisis
Jun 17, 2021
Flora Nelmes discusses the timings surrounding the probate process
Jun 09, 2021
Flora Nelmes examines the steps involved in obtaining probate in Taxation
Jun 09, 2021
Flora Nelmes discusses the probate process
Mar 29, 2021
Jonathan Gemmell’s summary of the Budget and Tax Day Announcements for Private Clients
Mar 25, 2021
Constance Tait and Julia Richards discuss the importance of making a Lasting Power of Attorney
Feb 09, 2021
Molly Wills discusses The Office of Tax Simplification’s First Report on Capital Gains Tax, in Private Client Business
Jan 06, 2021
Molly Wills discusses The Office of Tax Simplification’s review of Capital Gains Tax
Nov 30, 2020
Julia Richards examines section 33 of the Wills Act 1837 in WealthBriefing

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)