Measures available to HMRC to tackle avoidance and evasion

The boundaries between tax planning and avoidance for tax advisers were the subject of my previous article ‘Avoiding avoidance’ (Taxation 7 May 2020 page 10). This article looks at the range of anti-avoidance and anti-abuse measures available to HMRC and considers the boundaries between avoidance and evasion in some common interactions between adviser and client. The rules covered are aimed at innovative sophisticated and aggressive transactions.

If readers’ takeaway after reading this article is that they and their clients operate in the safe zone great. If any area causes concern the adviser should investigate thoroughly. The range of key measures are in Statutory framework and other standards.

Most of the rules such as the general anti-abuse rule (GAAR) are aimed at the taxpayers’ actions but advisers should be aware of them to ensure compliance. HMRC’s...