As readers will be aware, as part of the June 2010 Budget the Government announced it is considering introducing a General Anti-Avoidance Rule (GAAR). As part of those considerations, last December a study programme into the GAAR proposals was set up by the Government with the study group due to complete its work by 31 October 2011.

The remit of the study is to consider whether a GAAR could deter and counter tax avoidance, whilst providing certainty, retaining a tax regime that is attractive to businesses, and minimising costs for businesses and HMRC.

As the study has now passed its midway point, the study group has written a progress summary, which is available to view at http://www.hm-treasury.gov.uk/d/letter_grahamaaronsonqc_to_xst_090611.pdf

For more information on the GAAR proposal visit http://www.hm-treasury.gov.uk/tax_avoidance_gaar.htm