SolvedBKM406200 | Banking surcharge: targeted anti-avoidance rules: meaning of arrangements
From HM Revenue & Customs · Banking Manual
The TAAR applies to arrangements whenever they are entered into (see BKM406800 for guidance on arrangements entered into pre commencement). Whether the conditions of the anti-avoidance rule are met is judged by reference to the arrangements and identifying the scope of what constitutes the extent of the arrangements will be a key consideration.
Arrangements are widely defined to include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
It will be necessary to consider:
whether or not a reduction in surcharge profits arises as a consequence of the arrangements or for another reason, and
whether the arrangements include transactions or steps inserted purely for the purposes of reducing the surcharge payable.
The scope of what is included in the arrangements must be judged on a case-by-case basis, and may involve work toward agreement between HMRC and the customer.