Top GAAR - How A General Anti-Avoidance Rule For The UK Could Affect The Channel Islands

The idea of introducing an anti-avoidance rule was first mooted by Gordon Brown but dropped, and then resurrected by the coalition in December 2010 when it asked Graham Aaronson QC to consider whether a general anti-avoidance rule (a GAAR) should be introduced in the UK.

Graham Aaronson published his report on 21 November 2011, setting out a recommendation for the introduction of a narrowly focused general anti-abuse rule (still a GAAR but with the second A standing for Abuse rather than Avoidance). In April 2012, the UK Government announced that it would indeed introduce a GAAR targeted at "artificial and abusive tax avoidance schemes" and, in December 2012, published the draft legislation to implement the GAAR which will come into effect in April 2013.