Anti-avoidance law in the UK refers to the legal provisions and rules designed to prevent taxpayers from reducing their tax liability through artificial or contrived arrangements. These regulations and provisions are intended to ensure that taxpayers pay the correct amount of tax following the spirit of the tax laws rather than exploiting loopholes or the law’s letter to avoid paying tax. Anti-avoidance law in the UK is enacted by Parliament and is administered by HMRC. There are different anti-avoidance provisions in the UK tax system, including general anti-avoidance provisions, specific anti-avoidance provisions, and anti-abuse provisions.

General anti-avoidance provisions, such as the “General Anti-Abuse Rule” (GAAR), are broad provisions that apply to any arrangement entered into with the primary purpose of avoiding tax. Specific anti-avoidance provisions apply to particular types of transactions or structures, such as offshore arrangements or tax havens, and are designed to prevent taxpayers from using these types of arrangements to avoid tax. Finally, anti-abuse provisions are rules that apply to specific tax reliefs or exemptions and are designed to prevent taxpayers from abusing these reliefs or exemptions to avoid tax.

Anti-avoidance law in the UK is an integral part of the UK tax system, as it helps to ensure that taxpayers pay their fair share of tax and helps to maintain the integrity of the tax system. It is also an area of law subject to ongoing development and evolution as the government and HMRC seek to address new forms of tax avoidance as they emerge.