Fewer tax avoidance schemes promoted
Revenue regulations due by 1 August
New regulations and guidance published by HM Revenue and Customs and due to
take effect from 1 August has seen a sharp decline in marketed tax avoidance
schemes without affecting ‘legitimate’ tax planning, the tax office said.
According to HMRC, the number and quality of disclosures received to date
indicated that ‘the regime is targeting tax avoidance without affecting
legitimate tax planning’.
When they come into affect, the new rules will supersede all existing
guidance, meaning that an arrangement ‘may be rendered ineffective by
Parliament, possibly with retrospective effect’.
The guidance applies to income tax, corporation tax, capital gains tax and
stamp duty land tax only. Separate guidance is available for VAT schemes.
HMRC has published the regulations as statutory instruments and has provided
explanatory notes. It has also published a regulatory impact assessment.