Banking surcharge: targeted anti-avoidance rules: meaning of arrangements
CTA10/S269DN(4) & TIOPA10/S371BI(10)
The TAAR applies to arrangements whenever they are entered into (see BKM406800 for guidance on arrangements entered into pre commencement). Whether the conditions of the anti-avoidance rule are met is judged by reference to the arrangements and identifying the scope of what constitutes the extent of the arrangements will be a key consideration.
Arrangements are widely defined to include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
It will be necessary to consider:
- whether or not a reduction in surcharge profits arises as a consequence of the arrangements or for another reason, and
- whether the arrangements include transactions or steps inserted purely for the purposes of reducing the surcharge payable.
The scope of what is included in the arrangements must be judged on a case-by-case basis, and may involve work toward agreement between HMRC and the customer.