Income tax loophole slammed shut
The Inland Revenue has moved to close a loophole in tax legislation that could result in the avoidance of income tax.
Dawn Primarolo announced yesterday, changes relating to rules for taxing UK dividends received and making equivalent ‘manufactured payments’ under a repo or stock loan.
The changes will ensure that a tax deduction for a manufactured dividend may only be set against a corresponding taxable dividend receipt.
For more information on the loophole see: the full release