Ben Roberts (RPC) compares s 75A with the GAAR, in light of the recent decision in Project Blue.
HMRC has scored a resounding victory in Project Blue Ltd v HMRC [2013] UKFTT 378 (TC) the first case to consider in any detail the wide-ranging SDLT anti-avoidance provision (FA 2003 s 75A). The decision is of particular interest as it comes in the same month that the new UK general anti-abuse rule (GAAR) designed to attack the most ‘abusive’ of tax avoidance arrangements takes effect.
The new GAAR can apply to abusive arrangements designed to avoid SDLT (amongst other taxes). Under the GAAR not only is a tax ‘main purpose’ required but the new rule is narrowly focused with a number of important inbuilt taxpayer ‘safeguards’.
In light of HMRC's recent victory it will be interesting to see whether HMRC in future uses s 75A ...
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Home >Articles > SDLT anti-avoidance: s 75A vs the GAAR
SDLT anti-avoidance: s 75A vs the GAAR
Ben Roberts (RPC) compares s 75A with the GAAR, in light of the recent decision in Project Blue.
HMRC has scored a resounding victory in Project Blue Ltd v HMRC [2013] UKFTT 378 (TC) the first case to consider in any detail the wide-ranging SDLT anti-avoidance provision (FA 2003 s 75A). The decision is of particular interest as it comes in the same month that the new UK general anti-abuse rule (GAAR) designed to attack the most ‘abusive’ of tax avoidance arrangements takes effect.
The new GAAR can apply to abusive arrangements designed to avoid SDLT (amongst other taxes). Under the GAAR not only is a tax ‘main purpose’ required but the new rule is narrowly focused with a number of important inbuilt taxpayer ‘safeguards’.
In light of HMRC's recent victory it will be interesting to see whether HMRC in future uses s 75A ...
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:
