TaxPersonal TaxCIoT concerned over CGT spouse avoidance rules

CIoT concerned over CGT spouse avoidance rules

CIoT warns of HMRC inconsistencies over implementation of CGT spouse tax anti-avoidance rules 

Changes to cut down avoidance of capital gains tax on spouses appear
inconsistent and is not clearly targeted by
HM Revenue &
Customs
, warns the
Chartered Institute of
Taxation
.

The tax institute has raised concerns that the targeted anti-avoidance rule
aimed at the effects on CGT for transactions between spouses could give the
taxman ‘unlimited discretion’ in determining whether a transaction would be
caught.

‘The CIoT has asked for HMRC to give examples of acceptable transaction which
would not be caught by the [rule],’ said CIoT’s Emma Chamberlain.

The CIoT argues that new guidance on the policy gives examples of
unacceptable behaviour that ‘does not seem consistent with each other’.

‘[We believe] that the problems with the guidance clearly illustrate the
danger of giving HMRC too wide a discretion to determine whether a transaction
is taxable or not,’ Chamberlain added.

Further reading:

Accountancy
Age’s tax section

Taxman braced as UK’s richest move
online

Treasury moves to keep UK tax system
competitive

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