TaxPersonal TaxWealthy face capital gains crackdown

Wealthy face capital gains crackdown

General anti-avoidance rule on the use of bogus capital losses to reduce capital gains tax bills is used to hit wealthy individuals as well as companies

Wealthy people who generate bogus capital losses to reduce their capital
gains tax bills have been hit by a general anti-avoidance rule on the use of the
loopholes.

The moves on capital losses follow a similar crackdown on the use of capital
losses by companies last year, extending the nature of that restriction to
individuals as well as companies.

Simultaneously, the government closed down six schemes that companies were
using to avoid corporation tax.

The new legislation ranged from blocks on companies seeking to shift profits
offshore and returning them to the UK without incurring a tax charge ­ to banks
and other financial traders’ usage of authorised investment funds to avoid
restrictions on claiming double tax relief.

Kevin Hindley, associate director of corporate tax at Chiltern, said: ‘The
chancellor has clamped down on measures to avoid corporation tax and three stamp
duty land tax schemes.

‘With the disclosure regime in place this specific clampdown on avoidance is
going to be a regular feature of future budget reports.’

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