General anti-abuse rule and serial avoidance factsheets: CC/FS34a, CC/FS35, CC/FS36, CC/FS36a, CC/FS37, CC/FS38a

HMRC's factsheet CC/FS34a says the general anti-abuse rule (GAAR) helps make sure people pay the right amount of tax by tackling 'abusive' tax arrangements, and that it also aims to deter people from entering into abusive tax arrangements.

“The GAAR helps make sure that people pay the right amount of tax, by tackling ‘abusive’ tax arrangements. It also aims to deter people from entering into abusive tax arrangements.”

HMRC's factsheet CC/FS34a says HMRC asked you to read it because you have used arrangements that HMRC considers the general anti-abuse rule (GAAR) may apply to, and asks you to keep it safe as you may need to read it again.

“We have asked you to read this factsheet because you’ve used arrangements that we consider the general anti-abuse rule (GAAR) may apply to. Please keep it safe as you may need to read it again.”

HMRC's factsheet CC/FS34a says that under the GAAR HMRC can make 'just and reasonable' adjustments to remove ('counteract') the tax advantage a person has tried to gain from abusive tax arrangements, for example by amending their tax return.

“Under the GAAR we can make ‘just and reasonable’ adjustments to remove (‘counteract’) the tax advantage that a person has tried to gain from using abusive tax arrangements. We can do this, for example, by amending their tax return.”

HMRC's factsheet CC/FS34a says HMRC can charge penalties for arrangements entered into on or after 15 September 2016, at a fixed rate of 60% of the value of the counteracted advantage.

“We can charge penalties for arrangements entered into on or after 15 September 2016. The amount of the penalty is a fixed rate of 60% of the value of the counteracted advantage.”

HMRC's factsheet CC/FS34a says a GAAR penalty can only be charged if the tax advantage is counteracted under the GAAR rather than in any other way.

“We can only charge a GAAR penalty if the tax advantage is counteracted under the GAAR rather than in any other way.”

HMRC's factsheet CC/FS34a explains that arrangements are 'tax arrangements' if, considering all the circumstances, it would be reasonable to conclude that obtaining a tax advantage was the main purpose, or one of the main purposes, of the arrangements.

“Arrangements are ‘tax arrangements’ if, considering all the circumstances, it would be reasonable to conclude that the main purpose, or one of the main purposes of the arrangements was to obtain a tax advantage.”

HMRC's factsheet CC/FS34a says that, under the GAAR, tax arrangements are abusive if entering into or carrying out the arrangements cannot reasonably be regarded as a reasonable course of action in relation to the relevant tax provisions, taking into account all the circumstances.

“The GAAR states that tax arrangements are abusive if they are arrangements, the entering into or carrying out of which, cannot reasonably be regarded as a reasonable course of action in relation to the relevant tax provisions”

HMRC's factsheet CC/FS34a describes the GAAR Advisory Panel as a committee of independent tax specialists with no HMRC staff on it, whose purpose is to give an independent opinion as a safeguard for customers.

“The GAAR Advisory Panel is a committee of independent tax specialists. Their purpose is to provide a safeguard for customers by giving an independent opinion. No HMRC staff are on the panel.”

HMRC's factsheet CC/FS34a says that if health or personal circumstances may make it difficult for you to deal with this, you can tell the officer who has contacted you, and HMRC will help in whatever way it can.

“If you have any health or personal circumstances that may make it difficult for you to deal with this, please tell the officer who has contacted you. We’ll help you in whatever way we can.”

HMRC's factsheet CC/FS34a says you can ask someone else, such as a professional adviser, friend or relative, to deal with HMRC on your behalf.

“You can also ask someone else to deal with us on your behalf, for example, a professional adviser, friend or relative.”

HMRC's factsheet CC/FS35 explains that placing arrangements into a pool is known as pooling, and that HMRC can pool 2 or more sets of tax arrangements that it believes are equivalent and result in tax advantages it considers should be counteracted under the GAAR.

“Placing arrangements into a pool is known as pooling. … We can place tax arrangements into a pool where we believe that 2 or more sets of tax arrangements: … are equivalent … result in tax advantages that we consider should be counteracted under the GAAR”

HMRC's factsheet CC/FS35 says to read it if HMRC has given you a pooling notice under the general anti-abuse rule (GAAR), which HMRC may give if you have used arrangements that it considers the GAAR may apply to.

“You should read this factsheet if we’ve given you a pooling notice under the general anti-abuse rule (GAAR). … We may give you a pooling notice if you’ve used arrangements that we consider the GAAR may apply to.”

HMRC's factsheet CC/FS35 says a pooling notice will tell you which tax arrangements it relates to, the amount of the tax advantage, and what adjustments are needed to counteract the tax advantage.

“Your pooling notice will: … tell you which tax arrangements it relates to … tell you the amount of the tax advantage … tell you what adjustments are needed to counteract the tax advantage”

HMRC's factsheet CC/FS35 says a pooling notice will tell you how to take corrective action, and that relevant corrective action can only be taken before the 31st day after HMRC gives you the notice.

“If we give you a pooling notice, it’ll tell you how to take corrective action. … You can only take relevant corrective action before the 31st day after we give you the notice.”

HMRC's factsheet CC/FS35 says that if you amend your return or claim to counteract the tax advantage in the pooling notice, and HMRC takes that amendment into account when it closes the compliance check, you will not be able to appeal against that amendment.

“If you amend your return, or claim, to counteract the tax advantage specified in the pooling notice, and we take that amendment into account when we close the compliance check, you will not be able to appeal against that amendment.”

HMRC's factsheet CC/FS35 says you cannot appeal against a pooled arrangements opinion notice but can make representations, and that you have 30 days beginning with the day the notice is given to do so.

“You cannot appeal against a pooled arrangements opinion notice, but you can make representations. … You have 30 days beginning with the day on which the notice is given to do this.”

HMRC's factsheet CC/FS35 says you cannot appeal against a pooling notice either to HMRC or to a tribunal or court, but you can appeal against the adjustments once HMRC has made them.

“You cannot appeal against a pooling notice either to us or to a tribunal or court. … You can appeal against the adjustments once we’ve made them.”

HMRC's factsheet CC/FS35 says HMRC may charge a penalty if you entered into the tax arrangements on or after 15 September 2016 and certain conditions apply, and that the penalty is an amount equal to 60% of the value of the counteracted advantage.

“We may charge you a penalty if you entered into the tax arrangements on or after 15 September 2016 and all of the conditions below apply: … The penalty is an amount equal to 60% of the value of the counteracted advantage.”

HMRC's factsheet CC/FS35 says that if health or personal circumstances may make it difficult for you to deal with HMRC, you can tell the officer who has contacted you, and HMRC will help in whatever way it can.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who has contacted you. We’ll help you in whatever way we can.”

HMRC's factsheet CC/FS34a says that the provisional counteraction notices this section covers have been replaced by protective GAAR notices from 22 July 2020, following amendments to the GAAR legislation.

“allowed us to give provisional counteraction notices … these have been replaced by protective GAAR notices from 22 July 2020 following amendments to the GAAR legislation”

HMRC's factsheet CC/FS36 explains that a provisional counteraction notice tells you about some or all of the adjustments HMRC believes may be needed under the GAAR to counteract a tax advantage, which it calls 'notified adjustments'.

“A provisional counteraction notice tells you about some or all of the adjustments that we believe may be needed under the GAAR to counteract a tax advantage arising from tax arrangements. Such adjustments are referred to as ‘notified adjustments’.”

HMRC's factsheet CC/FS36 says you will need to read it if you have used arrangements that HMRC considers the GAAR may apply to, and HMRC has given you one or more provisional counteraction notices.

“You will need to read this factsheet if you’ve used arrangements that we consider GAAR may apply to, and we’ve given you one or more provisional counteraction notices.”

HMRC's factsheet CC/FS36 says that giving a provisional counteraction notice allows HMRC to make the notified adjustments before all the GAAR procedures have been completed.

“Giving a provisional counteraction notice allows us to make the notified adjustments before all the GAAR procedures have been completed.”

HMRC's factsheet CC/FS36 says that when you receive a provisional counteraction notice, there is nothing specific you need to do about it.

“When you receive a provisional counteraction notice, there’s nothing specific you need to do about it.”

HMRC's factsheet CC/FS36 says you cannot appeal against a provisional counteraction notice, but if HMRC makes the notified adjustments you will be able to appeal against HMRC having made them if you disagree, and HMRC will give more information about appeal rights at that point.

“You can’t appeal against a provisional counteraction notice. However, if we make the notified adjustments that are specified in the provisional counteraction notice, you’ll be able to appeal against us having made them if you disagree. We’ll give you more information about your appeal rights when we make the notified adjustments.”

HMRC's factsheet CC/FS36 says that if you disagree with the adjustments HMRC makes you need to appeal against them, and that if you do not appeal, the tax advantage shown in the notice will be treated as counteracted under the GAAR and you will be liable to pay the additional tax due.

“If you disagree with the adjustments that we make after we’ve given you a provisional counteraction notice, you need to appeal against those adjustments. If you don’t appeal, the tax advantage shown in the provisional counteraction notice will be treated as having been counteracted under the general anti-abuse rule (GAAR). This means that you will be liable to pay the additional tax due.”

HMRC's factsheet CC/FS36 says that if you appeal, nothing can be done to progress the appeal until HMRC gives you a different type of notice or tells you the notified adjustments are cancelled, and that you can withdraw your appeal if you decide to settle your tax affairs.

“If you appeal against us having made the notified adjustments, there’s nothing that you or we can do to progress your appeal, unless and until we’ve given you a different type of notice, or told you that the notified adjustments are cancelled. However, you can withdraw your appeal if you change your mind and decide that you want to settle your tax affairs.”

HMRC's factsheet CC/FS36 says that if you still disagree once you have received one of the listed notices, you have 30 days, starting from when HMRC gives you that notice, to tell HMRC your grounds for appealing against it having made the notified adjustments.

“If you still disagree once you’ve received one of those notices, you’ll have 30 days to tell us your grounds for appealing against us having made the notified adjustments. The 30 days will start from when we give you one of the notices listed below.”

HMRC's factsheet CC/FS36 says that if HMRC does not give you one of the listed notices before, or within 12 months of the date of the provisional counteraction notice, the notified adjustments in that notice will be treated as cancelled.

“If we don’t give you one or more of the notices shown below either before, or within 12 months of the date on which we give you the provisional counteraction notice, then the notified adjustments shown in that provisional counteraction notice will be treated as cancelled.”

HMRC's factsheet CC/FS36 says that if you have a tax adviser, you may want to discuss the matter with them.

“However, if you have a tax adviser, you may want to discuss the matter with them.”

HMRC's factsheet CC/FS36a tells you about protective GAAR notices given under the general anti-abuse rule (GAAR).

“This factsheet tells you about protective GAAR notices given under the general anti-abuse rule (GAAR).”

HMRC's factsheet CC/FS36a says that if HMRC counteracts a tax advantage under a protective GAAR notice it does so by making the adjustments shown in the notice, for example by making an assessment or amending your tax return.

“If we give you a protective GAAR notice, we’ll then remove (‘counteract’) the tax advantage by making the adjustments shown in that notice. For example, by making an assessment or amending your tax return.”

HMRC's factsheet CC/FS36a says HMRC may give you a protective GAAR notice if it considers a tax advantage might have arisen to you from abusive tax arrangements and that any tax advantage that arises should be counteracted under the GAAR.

“If we consider that a tax advantage might have arisen to you from tax arrangements that are abusive, we may give you a protective GAAR notice. We may do this if we consider any tax advantage that arises should be counteracted under the GAAR.”

HMRC's factsheet CC/FS36a says HMRC will not send a protective GAAR notice if it has given you a notice of proposed counteraction, a pooling notice or a notice of binding on or after 22 July 2020.

“We’ll not send you a protective GAAR notice if we’ve given you one of the following notices on or after 22 July 2020: … notice of proposed counteraction (under paragraph 3 of Schedule 43) … pooling notice (under paragraph 1 of Schedule 43A) … notice of binding (under paragraph 2 of Schedule 43A)”

HMRC's factsheet CC/FS36a says a protective GAAR notice tells you which tax arrangements and tax advantage it relates to, some or all of the adjustments HMRC thinks may be needed, that you cannot appeal against the notice itself, that you can appeal against the adjustments once made, and that if you do not appeal you have to pay the additional tax due.

“The protective GAAR notice will tell you: … which tax arrangements and tax advantage it relates to … about some or all of the adjustments we consider may be needed to counteract the tax advantage … that you cannot appeal against the protective GAAR notice … that, once we have made the adjustments, you’ll be able to appeal against them if you disagree … that, if you do not appeal, you’ll have to pay the additional tax due that results from us counteracting the tax advantage shown in the notice”

HMRC's factsheet CC/FS36a says a protective GAAR notice allows HMRC to make the adjustments before all the GAAR procedures have been completed, and that HMRC will usually make them quite soon after giving you the notice.

“A protective GAAR notice allows us to make the adjustments before all the GAAR procedures have been completed. … We’ll usually make the adjustments quite soon after giving you a protective GAAR notice.”

HMRC's factsheet CC/FS36a says that when you receive a protective GAAR notice there is nothing specific you need to do about it, and that if you have a tax adviser you may want to discuss the notice with them.

“When you receive a protective GAAR notice there’s nothing specific you need to do about it. However, if you have a tax adviser, you may want to discuss the notice with them.”

HMRC's factsheet CC/FS36a says you may also want to consider settling your tax affairs, and that if you want to settle you can let HMRC know as soon as possible so that it can tell you what to do next.

“You may also want to consider settling your tax affairs. If you want to settle, let us know as soon as possible so that we can tell you what to do next.”

HMRC's factsheet CC/FS36a says that if you appeal against the adjustments, your appeal cannot proceed until the earlier of the date HMRC gives you a final GAAR counteraction notice for the adjustments and 12 months after the date of the protective GAAR notice.

“If you appeal against us having made the adjustments, your appeal cannot proceed until the earliest of the following 2 dates: … the date that we give you a final GAAR counteraction notice for the adjustments … 12 months after the date we have given you the protective GAAR notice”

HMRC's factsheet CC/FS36a says that if you do not appeal you will have to pay the additional tax that results from the adjustments, and that you can withdraw your appeal or settle it by agreement if you decide you want to settle your tax affairs.

“If you do not appeal, you’ll have to pay the additional tax that results from us having made the adjustments. … You can withdraw your appeal or settle it by agreement if you change your mind and decide that you want to settle your tax affairs.”

HMRC's factsheet CC/FS36a says HMRC can charge penalties for arrangements entered into on or after 15 September 2016, a GAAR penalty of 60% of the value of the counteracted advantage, and only if it has given you a notice of final decision and the advantage is counteracted under the GAAR rather than in any other way.

“We can charge penalties for arrangements entered into on or after 15 September 2016. We can charge a GAAR penalty of 60% of the value of the counteracted advantage. … We can only charge a GAAR penalty if we have given you a notice of final decision and the tax advantage is counteracted under the GAAR, rather than in any other way.”

HMRC's factsheet CC/FS36a says that if health or personal circumstances may make it difficult for you to deal with HMRC, you can tell the officer who has contacted you, and they will help in whatever way they can.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who has contacted you. We’ll help you in whatever way we can.”

HMRC's factsheet CC/FS36a says you can ask someone else, such as a professional adviser, friend or relative, to deal with HMRC on your behalf.

“You can also ask someone else to deal with us on your behalf, for example, a professional adviser, friend or relative.”

HMRC's factsheet CC/FS37 says that if HMRC sends a notice of binding, it does not have to refer your individual set of arrangements to the GAAR Advisory Panel, and can instead apply the panel's opinions on the counteracted arrangements to equivalent arrangements bound to them.

“If we send you a notice of binding, we do not have to refer your individual set of arrangements to the GAAR Advisory Panel. Instead, we can apply the panel’s opinions relevant to the counteracted arrangements to equivalent arrangements (such as yours) that have been bound to those arrangements.”

HMRC's factsheet CC/FS37 says to read it if HMRC has given you a notice of binding and a bound arrangements opinion notice under the general anti-abuse rule (GAAR), which HMRC gives if you have used tax arrangements it considers the GAAR may apply to.

“You should read this factsheet if we’ve given you a notice of binding and a bound arrangements opinion notice under the general anti-abuse rule (GAAR). We’ll give you these notices if you’ve used tax arrangements that we consider the GAAR may apply to.”

HMRC's factsheet CC/FS37 says a notice of binding will tell you which tax arrangements it relates to, what the tax advantage is, and what adjustments are needed to counteract it.

“Your notice of binding will: … tell you which tax arrangements it relates to … tell you what the tax advantage is … tell you what adjustments are needed to counteract the tax advantage”

HMRC's factsheet CC/FS37 says you cannot appeal against a bound arrangements opinion notice but can make representations, and that you have 30 days beginning with the day the notice is given to do so.

“You cannot appeal against a bound arrangements opinion notice, but you can make representations. … You have 30 days beginning with the day on which the notice is given to do this.”

HMRC's factsheet CC/FS37 says a notice of binding will tell you how to take corrective action, and that relevant corrective action can only be taken before the 31st day after HMRC gives you the notice.

“If we give you a notice of binding, it’ll tell you how to take corrective action. … You can only take relevant corrective action before the 31st day after we give you the notice.”

HMRC's factsheet CC/FS37 says that if you amend your return or claim to counteract the tax advantage in the notice of binding, and HMRC takes that amendment into account when it closes the compliance check, you will not be able to appeal against that amendment.

“If you amend your return, or claim, to counteract the tax advantage specified in the notice of binding, and we take that amendment into account when we close the compliance check, you will not be able to appeal against that amendment.”

HMRC's factsheet CC/FS37 says you cannot appeal against a notice of binding, but you can appeal against the adjustments once HMRC has made them.

“You cannot appeal against a notice of binding … You can appeal against the adjustments once we’ve made them.”

HMRC's factsheet CC/FS37 says HMRC may charge a penalty if you entered into the tax arrangements on or after 15 September 2016 and certain conditions apply, and that the penalty is an amount equal to 60% of the value of the counteracted advantage.

“We may charge you a penalty if you entered into the tax arrangements on or after 15 September 2016 and all of the conditions below apply: … The penalty is an amount equal to 60% of the value of the counteracted advantage.”

HMRC's factsheet CC/FS37 says that if health or personal circumstances may make it difficult for you to deal with HMRC, you can tell the officer who has contacted you, and HMRC will help in whatever way it can.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who as contacted you. We’ll help you in whatever way we can.”

HMRC's factsheet CC/FS38a says the serial tax avoidance regime (STAR) is designed to deter people from using tax avoidance arrangements to gain a tax advantage that is not intended by the legislation.

“The serial tax avoidance regime (STAR) is designed to deter people from using tax avoidance arrangements to gain a tax advantage that is not intended by the legislation.”

HMRC's factsheet CC/FS38a says it is for people who have personally used tax avoidance arrangements, or who have a linked person who has used them.

“You should read this factsheet if you have personally used tax avoidance arrangements, or if a person linked to you has used them.”

HMRC's factsheet CC/FS38a says that when HMRC defeats tax avoidance arrangements you used, or that a person linked to you used, it will send you a warning notice telling you it has put you into STAR.

“When we defeat tax avoidance arrangements you used, or that were used by a person linked to you, we’ll send you a warning notice that tells you we have put you into STAR.”

HMRC's factsheet CC/FS38a says HMRC has to give the warning notice within 90 days beginning with the day it defeats the arrangements, and that the notice will tell you that you are in a 5-year warning period.

“We have to give you a warning notice within a period of 90 days beginning with the day we defeat the arrangements that STAR applies to. … The warning notice will tell you that you’re in a 5-year warning period.”

HMRC's factsheet CC/FS38a says each information notice must be sent no later than 30 calendar days after the end of the reporting period it relates to, and that if it is late, inaccurate or incomplete HMRC may extend the warning period by up to a further 5 years.

“You’ll need to send each of your information notices to us no later than 30 calendar days after the end of the reporting period to which it relates. If we do not receive your information notice on time, or if it’s inaccurate or incomplete, we may extend the warning period by up to a further 5 years.”

HMRC's factsheet CC/FS38a says HMRC may impose any or all of three sanctions: charging a penalty, publishing your details to identify you as a serial tax avoider, and stopping you from claiming certain direct tax reliefs.

“We may impose any or all of the following sanctions: … charging you a penalty … publishing your details to identify you as a serial tax avoider … stopping you from claiming certain direct tax reliefs”

HMRC's factsheet CC/FS38a says the STAR penalty rate depends on prior warning notices: 20% if there is no prior warning notice, 40% if there is one, and 60% if there are 2 or more.

“We’ll charge a penalty of 20% if we have not given you a prior warning notice. The penalty rate rises to 40% if we have given you one prior warning notice, or to 60% if we have given you 2 or more.”

HMRC's factsheet CC/FS38a says HMRC will give a relief restriction notice stopping you from claiming or using direct tax reliefs for 3 years (the 'restricted period') if all the conditions it lists apply.

“We’ll give you a relief restriction notice that will stop you from claiming or making use of direct tax reliefs for 3 years (the ‘restricted period’), if all of the following apply:”

HMRC's factsheet CC/FS38a says you cannot appeal against a decision to give you a warning notice, but can appeal to an independent tribunal if you are charged a STAR penalty or given a relief restriction notice and disagree.

“You cannot appeal against our decision to give you a warning notice. However, you can appeal to an independent tribunal if we charge you a penalty under STAR, or give you a relief restriction notice, and you disagree with our decision.”

HMRC's factsheet CC/FS38a says that if you have a reasonable excuse for the failure, HMRC will not charge a STAR penalty or stop you claiming direct tax reliefs for the defeated arrangements, and asks you to tell it if you think you have one.

“If you have a reasonable excuse for this failure, we will not charge you a penalty under STAR, or stop you from claiming direct tax reliefs in respect of your use of the defeated arrangements. … If you think you have a reasonable excuse, please tell us.”

HMRC's factsheet CC/FS38a explains that tax avoidance arrangements are 'defeated' when the tax advantage has been counteracted and the counteraction has become final.

“Tax avoidance arrangements are ‘defeated’ when the tax advantage has been counteracted and the counteraction has become final.”

HMRC's factsheet CC/FS38a says that if health or personal circumstances may make it difficult for you to deal with HMRC, you can tell HMRC and it will help in whatever way it can.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell us. We’ll help you in whatever way we can.”