TaxCorporate TaxPBR 06: Brown closes six avoidance schemes

PBR 06: Brown closes six avoidance schemes

Chancellor uses disclosure measures to block avoidance

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
    the machinery;
  • 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
2009/2010.

Related Articles

HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

1w Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

2w Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

3m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

4m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

4m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

4m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

4m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

4m Austin Clark, Reporter