Main purpose tests (found in targeted anti-avoidance rules or ‘TAARs’) are a mainstay of modern tax legislation though there are relatively few TAARs in the SDLT regime. One such TAAR is found in Part 1 of FA 2003 Sch 7 which contains the provisions for group relief from SDLT. This often-overlooked TAAR denies the availability of group relief from SDLT where the transaction is not effected for bona fide commercial reasons or where it forms part of arrangements of which a main purpose is the avoidance of tax.
In this context unlike the general position in FA 2003 ‘tax’ includes more than just SDLT: arrangements with a main purpose of saving income tax capital gains tax corporation tax and stamp duty...
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Main purpose tests (found in targeted anti-avoidance rules or ‘TAARs’) are a mainstay of modern tax legislation though there are relatively few TAARs in the SDLT regime. One such TAAR is found in Part 1 of FA 2003 Sch 7 which contains the provisions for group relief from SDLT. This often-overlooked TAAR denies the availability of group relief from SDLT where the transaction is not effected for bona fide commercial reasons or where it forms part of arrangements of which a main purpose is the avoidance of tax.
In this context unlike the general position in FA 2003 ‘tax’ includes more than just SDLT: arrangements with a main purpose of saving income tax capital gains tax corporation tax and stamp duty...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes: