ANOTHER tax avoidance scheme designed by boutique NT Advisors has been shut down by the first-tier tax tribunal.
The ‘Bluebox' scheme involved a purported £500,000 gift to a charity. The charity was used as a way of channelling the money tax free to the participant's Jersey trust, with virtually no benefit to charity.
A first-tier tribunal has rejected the claim for £200,000 of tax relief, protecting £21m.
Sixty participants are now expected to pay the taxes due. Three individuals have already paid £24m in tax prior to the hearing.
Previous schemes associated with the operation include the Cup Trust, a registered charity used as a front for another avoidance scheme saving investors £46m in tax and artificially generating Gift Aid.
Financial Secretary to the Treasury Nicky Morgan said: "The government has provided charitable tax reliefs to encourage people to give to charities. We will not tolerate abuse of these incentives for the purposes of tax avoidance. This was another scheme that wasn't worth investing in and, as well as the fees investors will have paid to the promoters, they will now have to pay the tax owed as well as interest."
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.