Gordon Brown has announced the closure of six tax avoidance schemes using the
disclosure regime introduced in the Finance Act 2004.
Legislation will target schemes that:
- See companies creat artificial tax losses by claiming exemption from tax on
annual payments paid by individuals;
- See banks use authorised investment funds to avoid restrictions on claiming
double taxation relief;
- Characterise unallowable payments as a fee;
- Use currency exposure in thinly capitalised companies to win tax relief;
- Use lease and leaseback of plant and machinery to gain tax relief on rent of
- Use the shifting of profits offshore, before returning them to the UK, so
that a tax charge is not incurred.
The Treasury estimates that avoidance policies in the budget will see £110m
saved on 2006/07, £180m in 2007/08, £195m in 2008/09 and the same sum again in
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