Tax loopholes closed.
The taxman has beefed up anti-avoidance legislation for international business in amendments to the Finance Bill.
The provision was tabled among clause changes the Treasury said would improve the tax treatment of companies that draw up their accounts in a foreign currency. International companies trading in the UK will be able to use their own currency and have more flexibility in choosing average rates of exchange. The Revenue said a recast anti-avoidance provision would ‘make it clear it is the total effect of a company’s arrangements that is relevant, not individual transactions.’