Budget 08: Anti avoidance to net £1.7bn
Treasury to recoup billions by closing down 11 avoidance schemes
A staggering £1.7bn has been targeted for recovery in anti tax avoidance
measures unveiled in the Budget.
The money will recouped over the next three years and along with excise duty
on alcohol, raising £1.6bn, substantially bankrolls the government’s spending
plans.
The huge anti avoidance tax take comes from closing down 11 separate
avoidance schemes and more than doubles the sums estimated for tax protection
measures contained in last year’s Budget.
Among the schemes to be closed will be two involving stamp duty land tax and
the abuse of management expenses in North Sea oil and gas recovery.
Among the most lucrative schemes to be halted is one involving controlled
foreign companies which should net the Treasury £400m over the three years to
2011.
However, the attack on CFC management is likely to prove highly
controversial.
A statement from the Treasury said: ‘The government is determined to continue to
challenge those who try to reduce their tax payments in an unfair way.’
The statement said the anti avoidance measures would ‘support the provision
of public services whilst protecting the UK’s competitive business environment.’