Examples of how the GAAR applies to tax arrangements

5.1.5.3 Are the arrangements intended to exploit any shortcomings in the
relevant tax provisions?
Yes. Section 45, FA 2003 is in place to assist bona fide transactions and
prevent a double charge to SDLT, not to exempt land transactions entirely
from IHT.
5.1.5.4 Do the tax arrangements accord with established practice and has
HMRC indicated its acceptance of that practice?
HMRC has never accepted that the arrangements give rise to the claimed tax
result. The Department has published advice to this effect in its technical
guidance about section 75A, FA 2003 and in Spotlights Article 10.
5.1.6 Conclusion
On the facts given, the various SDLT subsale avoidance schemes involve
abusive arrangements to which the GAAR applies.
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