Warning signs

Key points * Introduction of complex SDLT anti-avoidance rules. * The potentially wide interpretation of 'involved' and 'in connection with'. * The increased liability as a result of the proposals. * The possible 'double whammy'. * The need for thorough reviews of property transactions on or after 6 December 2006.

A GREAT DEAL of attention has been directed at the capital loss general anti-avoidance rule (GAAR) in Finance Bill 2007 cl 27 and the fact that HMRC are now into their third draft guidance is indicative of the justification of the concerns which have been expressed. Similar guidance is to be expected albeit after the Royal Assent for a far more wide-ranging GAAR; that contained in clause 70 in relation to stamp duty land tax (SDLT).
This is far more wide ranging because as drafted it may well be necessary for any...