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.
Link: A new corporate tax agenda?
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