As widely anticipated, the Government announced that it intends to accept the recommendation of the Aaronson report for the introduction of a General Anti-Abuse Rule (GAAR). Despite rumours that it would come into effect in April 2012, we have received confimation that there will be a period of consultation throughout the summer of 2012 year.

The proposed new rule, which is now expected to come into effect from April 2013, will apply to income tax, capital gains tax, corporation tax, petroleum revenue tax, NIC and SDLT.

The consultation will be an interesting process and will cover the draft legislation and the ‘advisory panel’ who will play a central role in its operation and the preparation of full exploratory guidance.  Suffice to say, we intend to have our say as part of this consultation process and we will be asking for your thoughts and views before submitting our response. If you’d like to see our response do get in touch.

Who to contact?

Call Gareth Costello on 07739 101025 or 0115 983 5580 for more information, or contact him by email at gcostello@edftax.co.uk.