The schemes targeted are broadly those which have sought to create a loss through the write-off of expenditure or the value of rights or assets through GAAP.
Sideways loss relief is an allowance made for trading losses.
Although the settlement regimes differ, they broadly take the form of the following:
Relief against other income will be allowed in an amount equivalent to the taxpayer’s contribution to the scheme, less any element expended on unallowable fees.
Unallowable fees are those spent on tax advice or circular funding arrangements. The balance of the loss claim won’t be allowable. Loan interest will only be allowable to the extent that it represents the allowable expenditure paid out of the initial cash contribution.
Any share of income attributable to the cash element of expenditure will be taxable in full, while any share of income attributable to the loan financed element will only be taxable in so far as it represents investment income over and above the return of the initial capital.
Where people decline the settlement opportunity, HMRC will increase the pace of their investigations and move disputes quickly to legal action.
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Lord Howard Leigh of Hurley discusses the government’s initiatives to mitigate tax avoidance and evasion
Top 50+50: Demand for tax advisory services remains high, but fee pressure is expected in relation to compliance services
The demand for tax advisory services remains high and this looks to continue; but fee pressure is expected in relation to compliance services as the “Making Tax Digital” initiative is rolled out,
While some resistance to change is to be expected, the degree of controversy surrounding HMRC's Making Tax Digital proposals has surprised the government