The prospect of large listed companies abandoning the UK for countries with
lower tax rates has prompted HM Revenue & Customs to close a tax-avoidance
The new rules – contained in the Finance Bill – will stop companies that are
incorporated in the UK, but based elsewhere for tax purposes, from escaping the
impact of anti-avoidance laws known as the controlled foreign company (CFC)
These rules impose taxes on income earned in tax havens and low-tax countries.
Until now, companies have been able to get round the CFC rules by acquiring
‘shell’ companies that were exempt from the rules.
This tax structure has been adopted by a small number international
companies, the FT reported.
Anneli Collins, a partner of KPMG, said: ‘What the Revenue wants is to stop
major UK plcs from getting out of the UK.’
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The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group