New TAARs: Trade and business property deductions

Last month, the government introduced new targeted anti-avoidance rules (TAARs) in its latest bid to combat tax avoidance.

The trade and business property deductions are aimed at those carrying on a trade or property business who engage in "arrangements intended to produce a tax advantage" involving the relationship between rules prohibiting and allowing deductions. 

Effective from 21 December, the TAARs will be supported by legislation in Finance Bill 2013. 

The measure will add £10m a year to the exchequer and is expected to only significantly impact firms engaging in "abusive" tax avoidance schemes.

These will apply to amounts which arise because of, or in connection with, arrangements entered into on or after 21 December 2012. 

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