Difference between tax planning/mitigation and ‘unacceptable’ tax avoidance: 2

The tax advantage or main purposes threshold for sale of occupation income (SOI) and transactions in securities (TiS) is hard-baked into the legislation. It is also the case in other targeted anti-avoidance rules.

However there are many reliefs and exemptions where it is not explicitly mentioned. That said some of these may have to consider whether the transaction being proposed might also trip over into the TiS rules.

Also they might need to understand ‘tax advantage’ in the context of the disclosure of tax avoidance schemes (DOTAS) regulations and perhaps less likely the general anti-abuse rule (GAAR).

DOTAS

Assuming there are ‘arrangements’ then there are broadly three stages in ascertaining whether those arrangements are notifiable arrangements for the purposes of DOTAS:

• Is there are tax advantage at all?
• If so is that tax advantage one of the main purposes?
• If both of the...