n Business Tax and Company Law Quarterly - A general anti-avoidance rule in the UK : sharing the spirit of the South African GAAR

Abstract

This article follows on from the article published in November 20122 which compared basic elements of the general anti-avoidance rule ('GAAR') as revised and implemented in South Africa in 2006 and the new GAAR proposed by Her Majesty's Revenue and Customs ('HMRC') in the United Kingdom. The UK Government announced in 2012 that it would introduce a GAAR in the 2013 Finance Bill. Following the publication of the Finance Bill earlier this year, HMRC has now published its detailed guidance. This article reflects on these recent developments in the UK and, adopting a bird's eye view, considers to what extent the UK GAAR shares the spirit of the South African GAAR, in targeting only aggressive tax avoidance schemes.