This controversial measure allows HMRC to nullify an arrangement which is held to be abusive in terms of avoiding tax. This is all fairly subjective, but HMRC have published guidance on how they will operate the new rules which do give some comfort.

In particular they have detailed the approach to take when considering whether the new rule should apply, and to protect you from any HMRC attack we will always make sure that when giving tax advice the possible operation of the GAAR will be fully considered. The extent of any sensible disclosure to HMRC is linked to this when preparing your annual tax return.