Section 209AA | Protective GAAR notices ^F1

(1)An officer of Revenue and Customs may give a written notice (a “protective GAAR notice”) to a person stating that the officer considers—^F1

(a)that a tax advantage might have arisen to the person from tax arrangements that are abusive, and^F1

(b)that, on the assumption that the advantage does arise from tax arrangements that are abusive, it ought to be counteracted under section 209.^F1

(2)The protective GAAR notice must be given within the ordinary assessing time limit applicable to the proposed adjustments.^F1

(3)But if—^F1

(a)a tax enquiry is in progress into a return made by the person, and^F1

(b)the return relates to the tax in respect of which the specified adjustments under the protective GAAR notice are made,^F1

the protective GAAR notice must instead be given no later than the time when the enquiry is completed.

(4)The protective GAAR notice must—^F1

(a)specify the arrangements and the tax advantage, and^F1

(b)specify the adjustments that, on the assumption that the advantage does arise from tax arrangements that are abusive, the officer proposes ought to be made.^F1

(5)The adjustments specified in the protective GAAR notice have effect as if they are made by virtue of section 209.^F1

(6)Notice of appeal may be given against the adjustments specified in the protective GAAR notice (whether or not the adjustments are also made otherwise than by virtue of section 209).^F1

(7)Any appeal against the specified adjustments (whether made by virtue of section 209 or otherwise) is, as a result of this subsection, stayed—^F1

(a)for a period of 12 months beginning with the day on which the protective GAAR notice is given, or^F1

(b)if a final GAAR counteraction notice is given before the end of that period, for a period ending with the day on which the final GAAR counteraction notice is given.^F1

(8)If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)—^F1

(a)notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and^F1

(b)no final GAAR counteraction notice is given,^F1

the protective GAAR notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with).

(9)In any case not falling within subsection (8)—^F1

(a)the specified adjustments have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but^F1

(b)the giving of the protective GAAR notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice.^F1