Tax planning and anti-avoidance

Question 1

what is a GROB?

Answer 1

1. DONEE does not assume possession of the property at or before the the start of the relevnt period.
2. any time during the relevant period, the property is not enjoyed to the entire exclusion.

Property is treated as part of the donor’s estate for IHT purposes.
Treated as making a PET on the date reservation ceased.

Question 2

What is POAC (pre-owned assets charged)

Answer 2

Annual income charged upon individuals who give away certain types of property during their lifetime but subsequently obtain a benefit from that property.

applies to land. chattels, settlor interest trusts.

Question 3

What are the GAAR? (general anti abuse rules)

Answer 3

arrangement gives rise to a tax advantage and this was the main/one of the main purposes of the arrangement.
- cannot be reasonably regarded as a reasonable course of action.

Question 4

What are DOTAS (disclosure of tax avoidance schemes)?

Answer 4

Places duties on promoters of arrangements to inform HMRC about notifiable arrangements on proposals

1. Main purpose was to enable a person to gain a specific advantage in relation to IHT.