TaxPersonal TaxRevenue ends tax deals with wealthy

Revenue ends tax deals with wealthy

The Inland Revenue has ordered its staff to stop striking deals with wealthy individuals after a court ruled the tax authority had been wrong to reach a 'forward' tax arrangement with Harrods owner Mohamed Al Fayed.

The Revenue had cancelled its arrangement with Al Fayed after he boasted of his wealth during the Neil Hamilton libel trial in 1999. He took the Revenue to court over the matter only to learn in a ruling of the Court of Session in Edinburgh that the tax collector had been wrong to make the deal in the first place.

As a result the Revenue is to extend its review of the procedure, which was looking into deals on a case by case basis.

Beryl St James, a spokeswoman for the Revenue, said: ‘At the present time we have instructed our staff to make no more agreements.’

The forward tax deals usually allow wealthy individuals with complex tax affairs to make a single tax contribution at an agreed level over a fixed period.

The Revenue estimates there may be as few as only two such deals currently valid and hopes to finish the review in the current year.

Related Articles

Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

1m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

3m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

5m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

8m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

9m Emma Smith, Managing Editor