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 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.

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