HMRC has scored a resounding victory in Project Blue Ltd v HMRC [2013] UKFTT 378 (TC) the first case to consider in any detail the wide-ranging SDLT anti-avoidance provision (FA 2003 s 75A). The decision is of particular interest as it comes in the same month that the new UK general anti-abuse rule (GAAR) designed to attack the most ‘abusive’ of tax avoidance arrangements takes effect.
The new GAAR can apply to abusive arrangements designed to avoid SDLT (amongst other taxes). Under the GAAR not only is a tax ‘main purpose’ required but the new rule is narrowly focused with a number of important inbuilt taxpayer ‘safeguards’.
In light of HMRC's recent victory it will be interesting to see whether HMRC in future uses s 75A or the new GAAR to attack SDLT avoidance schemes.
What this means: s 75A vs GAAR
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