George Osborne referred today in his Budget speech to the proposed General Anti-Avoidance Rule (GAAR).
Graham Aaronson QC headed a distinguished panel commissioned by the Treasury to determine if such a GAAR would be effective. The consultation process, taking place over much of 2011, came to the conclusion that such an instrument could be implemented.
The Chancellor said:
“On coming to office, I asked Graham Aaronson QC to establish whether a General Anti-Avoidance Rule could work in the UK tax system. He recommended that such a rule would improve our ability to tackle tax avoidance without damaging the competitiveness of the UK as a place to do business. We agree. So we will introduce one. We will consult on the details of the new Rule and legislate for it in next year's Finance Bill”.