HMRC’s revised guidance on FA 2003 ss75A (SDLT’s general anti-avoidance rule) does not contain much detailed analysis of this notoriously difficult provision. But it shows that HMRC will interpret ‘scheme transactions’ widely and should be willing to apply the legislation where there is no tax avoidance in the ordinary sense. This is because HMRC interprets the Supreme Court decision in Project Blue to mean that anything that triggers a s 75A charge, read literally, is the avoidance that s 75A seeks to counter: a literal reading of s 75A is a purposive reading. If HMRC does not follow this guidance consistently, SDLT will be applied arbitrarily in many cases.
If you are not a subscriber, subscribe now to read this content.
HMRC’s revised guidance on FA 2003 ss75A (SDLT’s general anti-avoidance rule) does not contain much detailed analysis of this notoriously difficult provision. But it shows that HMRC will interpret ‘scheme transactions’ widely and should be willing to apply the legislation where there is no tax avoidance in the ordinary sense. This is because HMRC interprets the Supreme Court decision in Project Blue to mean that anything that triggers a s 75A charge, read literally, is the avoidance that s 75A seeks to counter: a literal reading of s 75A is a purposive reading. If HMRC does not follow this guidance consistently, SDLT will be applied arbitrarily in many cases.
If you are not a subscriber, subscribe now to read this content.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
