TaxPersonal TaxTaxpayers lose flip-flops

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 tax payers 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.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

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

2m 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?

4m 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

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m 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

7m 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

9m Alia Shoaib, Reporter