In what is familiar territory for the general anti-abuse rule (GAAR) advisory panel its most recent opinion delivered in April but published in July covered a set of arrangements that sought to circumvent the tax provisions that bring amounts loaned by close companies to their participators into tax where the loans remain outstanding for more than nine months after the year end.
What is less familiar territory is that the panel concluded despite the arrangements being contrary to the policy objectives of the legislation and exploiting a shortcoming in the legislation the steps taken were a reasonable course of action for tax purposes.
GAAR advisory panel
The GAAR advisory panel was set up in 2013 to coincide with the entry into force of the UK’s general anti-abuse rule. The panel provides guidance and non-binding opinions on cases where HMRC considers that the GAAR may...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.