TaxCorporate TaxAnti-avoidance plan conflicts with leasing rules

Anti-avoidance plan conflicts with leasing rules

Finance and Leasing Association says plan to clamp down on loans exchanged for future revenues conflicts with long-standing leasing tax proposals

Anti-avoidance
proposals on structured finance arrangements, introduced last week
, conflict
with the government’s plan for the taxation of leasing, the Finance and Leasing
Association (FLA) has said.

In a letter to the FT, Martin Hall, director general of the FLA said
the plans ‘interact with the leasing proposals in so many possible ways that
only an exemption for leasing is safe, if contradictory provisions are to be
avoided.’

The government has been consulting on the leasing proposals for thee years,
he said, contrasting that with the relative rush and lack of discussion over the
tax avoidance proposals.

The plan announced last week is intended to prevent companies selling future
income streams in exchange for loans to create tax advantages.

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