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HMRC internal manual

Banking Manual

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.