ANOTHER tax avoidance scheme designed by boutique NT Advisors has been shut down by the first-tier tax tribunal.
The ‘Bluebox’ scheme involved a purported £500,000 gift to a charity. The charity was used as a way of channelling the money tax free to the participant’s Jersey trust, with virtually no benefit to charity.
A first-tier tribunal has rejected the claim for £200,000 of tax relief, protecting £21m.
Sixty participants are now expected to pay the taxes due. Three individuals have already paid £24m in tax prior to the hearing.
Previous schemes associated with the operation include the Cup Trust, a registered charity used as a front for another avoidance scheme saving investors £46m in tax and artificially generating Gift Aid.
Financial Secretary to the Treasury Nicky Morgan said: “The government has provided charitable tax reliefs to encourage people to give to charities. We will not tolerate abuse of these incentives for the purposes of tax avoidance. This was another scheme that wasn’t worth investing in and, as well as the fees investors will have paid to the promoters, they will now have to pay the tax owed as well as interest.”
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward