General Anti-Abuse Rule (UK tax)
The UK General Anti-Abuse Rule permits a tax advantage from arrangements within its scope to be counteracted where the statutory tests for abusive tax arrangements are met. The enquiry considers the arrangements, their tax purpose and whether they are abusive under the statutory test; it is not a rule that all tax planning or every tax advantage is prohibited. The taxes covered, procedure and consequences depend on the applicable legislation and period.
Worked example
An adviser considers a contrived arrangement intended to secure an unintended tax advantage. Before concluding that the GAAR applies, the adviser checks the relevant tax, statutory abusive-arrangement test, procedural requirements and facts.
Common mistake
Assuming that ordinary use of every tax relief automatically triggers the GAAR, or treating the GAAR as synonymous with criminal tax evasion.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |