The UK is, at last, getting a legal framework for anti avoidance….a general anti avoidance rule or GAAR.
The new rules are contained in the Finance Bill 2013 and should receive Royal Assent in July this year.
Essentially this combats schemes which aim to save tax in away which was not anticipated by parliament when the relevant tax law was written AND also where the course of action cannot be argued as reasonable.
Schemes caught by this net will be assessed by three members chosen from an advisory panel.
Not really something most small Cumbrian businessmen will need to worry about. But in an age where the big tax avoiders seem to take all the headlines maybe a step in the right direction.
References: Taxline June 2013