Autumn Statement 2014: HMRC to consult on introducing new penalty regime for General Anti-Abuse Rule (GAAR) cases

The GAAR is relatively new and there are currently no provisions for penalties where the GAAR applies.

The government has announced that it will consult on whether and how to introduce penalties for tax cases where the GAAR applies.

HMRC are continuing to raise the stakes for UK taxpayers who engage in aggressive tax planning; however, it is concerning that taxpayers may be penalised if the panel rules that the GAAR applies and even though the taxpayer may have taken all reasonable steps to ensure that the planning is within the letter of the law.