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.
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