Taxation of Chargeable Gains Act 1992 Schedule 1A paragraph 11

Anti-avoidance rule for Schedule 1A arrangements

Section 11 of Schedule 1A provides an anti-avoidance rule that allows HMRC to counteract tax advantages obtained through arrangements whose main purpose, or one of whose main purposes, is to exploit the provisions of Schedule 1A or to misuse double taxation treaties in a manner contrary to their intended object and purpose.

• Where arrangements are entered into mainly to obtain a tax advantage by exploiting Schedule 1A provisions or by misusing double taxation treaties, HMRC can counteract the advantage through just and reasonable adjustments
• Adjustments can be made by HMRC or by the taxpayer, through assessments, amended assessments, claim modifications, or other appropriate means
• In treaty shopping cases — where the advantage arises from exploiting double taxation arrangements contrary to their object and purpose — the counteraction overrides the normal priority given to treaty provisions under section 6(1) of TIOPA 2010
• The rule applies to arrangements entered into on or after 22 November 2017 for treaty shopping cases, and on or after 6 July 2018 for all other cases