The taxman has barred the use of two avoidance schemes involving leasing schemes. The schemes emerged from disclosures made under the disclosure regime.

The first blocked scheme uses arrangements involving head leases and subleases to create artificial tax losses. The schemes create a mismatch between the tax treatment of rentals paid and received by the intermediate lessor.

The second type of scheme uses arrangements involving the grant of a lease for a premium.

The counter-measures will take effect from 13 December 2007. A draft of the legislation that will be included in the 2008 Finance bill has been drawn up.

Further reading:

Read more on the anti-avoidance provisions

Disclosure plan has hallmark of success