Taxpayers lose flip-flops
Hundreds of taxpayers can no longer benefit from using 'flip-flop' tax schemes to reduce their CGT liabilities following a decision by the House of Lords.
Yesterday five law lords reversed a court of appeal hearing that had ruled in favour of taxpayers using the schemes to lower payments to the Inland Revenue.
‘Flip-flops’, also known as ‘the two settlement route’, were oft employed during the 1990’s by using two separate trusts with a loan arrangement between them.
The schemes eventually died out and yesterday’s case – Trennery v West – had worked through the courts for several years, according to a report in the Financial Times.