Paymaster general, Dawn Primarolo, said the government would ‘not tolerate’ the efforts of the tax avoidance industry to ‘undermine the will of parliament’.
‘We are determined to stamp out abusive tax avoidance and create a level playing field for all,’ she said.
The first change will prevent companies avoiding corporation tax through using manufactured payments and will apply where the arrangements have an ‘unallowable purpose’.
The second change arose because the Revenue was ‘alerted’ to a scheme designed to negate the effect of legislation where businesses sell rental streams from leased plant or machinery for a sum that is not brought into charge as income.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states