Govt opens consultation on anti-tax avoidance rule
The government has opened a formal consultation on a new anti tax avoidance rule.
The review of the general anti-abuse rule (GAAR), to tackle artificial and abusive tax avoidance schemes, follows an announcement in this year's Budget 2012 that such a rule will be introduced in 2013.
Graham Aaronson QC was tasked by the government to conduct a review into the feasibility for the UK tax system of anti-abuse rules.
He concluded that the introduction of a targeted rule would deter tax avoidance schemes and help provide a more level playing field for business.
The government has also spoke to businesses, tax experts and representative bodies in order to draw up the consultation and draft legislation.
It is proposed that a GAAR will apply to main direct taxes, National Insurance and stamp duty land tax.
David Gauke, exchequer secretary to the Treasury, said the introduction of a GAAR would strengthen the government's anti-avoidance strategy.
"The rule we are consulting on from today will effectively tackle such schemes, while minimising the impact on the vast majority of taxpayers who pay a fair share," he said.