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General Anti-Avoidance Rule
The General Anti-avoidance Rule (GAAR) is a principle that gives the Revenue Authority in a country the ability to refuse the tax benefit of transactions or structures that do not have any business element, and the main objective of such a trade is to achieve the tax reduction. A GAAR is warranted because of the widespread belief that the tax system’s overall honesty has been at risk. The United Kingdom adopted general anti-abuse rules (GAAR) on July 17, 2013. Main taxes it applies to are income tax, CGT, IHT, corporation tax, petroleum revenue tax, SDLT, ATED, diverted gains tax, and national insurance contributions.
The purpose of the GAAR is to combat tax abuse. Accordingly, HMRC guidance notes that the rule will only apply if the taxpayer’s action is unreasonable and hopes to accomplish a beneficial tax outcome that Government didn’t expect when it adopted the tax rules. In addition, the legislation includes certain protections designed to provide the taxpayer with the benefit of the doubt in cases involving some tax avoidance.
In addition to the GAAR, tax legislation has various important anti-avoidance rules. A few of these regulations are known as targeted anti-avoidance rules (TAARs), while others might be structured as less assertive forms of anti-avoidance protection. It is possible to employ the GAAR to combat abusive behaviour that takes advantage of a TAAR or another anti-avoidance rule because it effectively sits above all those other rules.
Professional accounting bodies license accountants in the UK and elsewhere. These organizations provide both academic and practical training in accounting. Hire someone who has completed all the required examinations and has an accounting licence, whether for personal or business affairs.
Professional indemnity insurance (PII) is a contractual need for qualified accountants, and it protects both the accountant and the customers. If the accountant doesn’t follow your business interests or professional ethics, you may report them to their regulatory body. These are the top accounting institutions and their accompanying credentials in the UK.
- ACCA – Chartered Certified Accountant (ACCA or FCCA)
- Chartered Accountant (ICAEW) – (ACA or FCA)
- Chartered Management Accountant (CMA) (ACMA or FCMA)
- Chartered Accountants Ireland (CAI) (ACA or FCA)
- Institute of Financial Accountants (AFA, FFA)
Although some accountancy firms will offer you a ‘one-size-fits-all’ solution, most services are more flexible than this. Accountancy packages can vary in the services they provide. Although there are certain basic functions which most accountants will provide (and which are generally included in a monthly fee), there may also be additional services available for an extra fee. These extras usually include Self Assessment Tax Returns, Payroll and workplace pension compliance, Limited Company Accounts, Tax advice/planning, VAT Returns and MTD.
We are open for business and happy to accept your call. Our team of qualified accountants and tax consultants have broad skills and experience across all areas of accounting, taxation, tax planning, savings, and business investment which they utilise to the best of their abilities to help your company and achieve the best possible outcome for you. If you want to meet with us, we have a team of qualified personal tax accountants who can meet over the phone, via video call, or in one of our offices.
Perhaps it’s time to look for a new accountant if you haven’t enjoyed such kind of assistance from your existing one? Our accountants will work with you or your business to ensure that all elements of your finances are handled proactively so that you can refocus on what matters most – operating your business!
