Caught in the crossfire?

18 April 2007 / Emma Chamberlain

Issue: 4104 / Categories: Comment & Analysis , Admin

EMMA CHAMBERLAIN suggests that the aim of the proposed targeted anti-avoidance legislation and its accompanying guidance could be substantially improved.

KEY POINTS * The purpose of the new rules. * Defining the terminology. * The profession's objections to the new rules. * What is caught and what is not. * Some common 'problematic' transactions.

AS REGULAR READERS of Taxation will be aware the Government announced a new targeted anti-avoidance rule (TAAR) in the Pre-Budget Report and published draft legislation and accompanying guidance in December. FA 2006 had already introduced 'targeted anti-avoidance rules' restricting losses of corporate bodies and this new TAAR aims to block capital gains tax loss schemes undertaken by companies individuals trustees and personal representatives. The new rules apply to any transaction effected on or after 6 December 2006 where the obtaining of a tax advantage is the main purpose or one of the main purposes of the arrangements.
Specifically new section 16A in TCGA 1992 (found in Finance Bill...

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