CG40240 - Capital loss anti-avoidance rule: General

Anti-avoidance provisions were introduced in FA 2006 (called Targeted Anti-Avoidance rules, or "TAARs" for short). They included a measure to counter the contrived creation of capital losses by companies (known as TAAR1).

The legislation was announced in the Chancellor's Pre-Budget Report on 5 December 2005 and is effective from that date. See CG40241.

A statement of principles, draft guidance document and draft legislation were published at PBR. The statement of principles, on which the legislation was based, and final version of the published guidance document can be found at appendix 8.