Following a referral from HMRC, the General Anti Avoidance Ruling (GAAR) advisory panel has ruled that use of the stamp duty avoidance scheme was unacceptable and broke the law.

The opinion relates to stamp duty land tax arrangements in relation to the sale and purchase of a residential property, involving an alternative finance agreement and a lease agreement, which HMRC described as an abusive tax arrangement.

This is the first decision the GAAR panel has issued using the enablers legislation under the provisions of Schedule 16 F(2)A 2017 which covers penalties for enablers of defeated tax avoidance.