HMRC has launched its consultation on the implementation of a General Anti-Abuse Rule, including draft legislation. Responses are required by 14 September 2012. The proposal outlines a two stage test: (1) Is it reasonable to conclude that one of the main purposes of the arrangements in question is to obtain a tax advantage?; and (2) Are the arrangements abusive having regard to the relevant tax provisions and result of the arrangements?
See http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_ PROD1_032113 for more details.
