Consultation on tax abuse rule

The government yesterday launched a consultation on plans for a general anti-avoidance rule (GAAR) intended to clamp down on what it sees as “artificial and abusive avoidance schemes.” The GAAR is expected to apply to main direct taxes, like income tax, corporation tax and national insurance, as well as stamp duty land tax and potentially inheritance tax. The aim is also to “minimise the impact on the vast majority of taxpayers who pay a fair share,” said minister David Gauke.