Today’s budget included the stamping out of various techniques (known as “refreshing” arrangements) that allow companies to use certain types of brought forward losses which might otherwise not be used (sometimes described as being “trapped”). The losses in question are trading losses, non-trading loan relationship deficits (interest expenditure) and management expenses which, in each case, … Continue reading A more straight forward rule would have been refreshing
Next week’s Finance Bill will include the new general anti-abuse rule (GAAR) which is expected to come into effect in June or July 2013. It is perhaps a measure of the changing political climate over the past year that the GAAR, which was initially very controversial in some quarters, is now widely regarded as necessary … Continue reading The GAAR
Given the general thrust against cash being returned or otherwise made available to stakeholders in companies without “proper” tax being paid (eg. the disguised remuneration legislation) it is perhaps unsurprising that various tax planning opportunities around the loans to participator (“LTP”) rules are being blocked. The LTP rules have been in existence for several decades and exist in order to deter close companies … Continue reading Loans to participators
As ever, pages of documents have been published backing up the Chancellor’s Budget speech made earlier today. We are analysing these and will soon be blogging more in depth analysis but in the meantime here are some headline changes: Corporation tax rate to be 20% from April 2015 – this will match the small profits … Continue reading The headline changes….more to come
The Autumn Statement 2012 contained a number of announcements of interest to individuals and small and medium-sized enterprises, but there was comparatively little of relevance to large companies and banks. The main eye-catching announcement to affect corporates is the further 1% cut to the headline rate of corporation tax – the rate will reduce from 24% for the current year, to 23% from 1 April … Continue reading Corporation tax rate cut again, but pressure on corporate tax avoidance will only increase
The Budget did not signal any changes to the Transfer Pricing rules which is most welcome at this time as there is a packed schedule of initiatives over the next 12 months for transfer pricing at the OECD level, chief of which is the review and likely re-write of Chapter VI (Special Considerations for Intangible Property) and Chapter VIII … Continue reading Increasing reliance on Transfer Pricing principles?
A stamp duty land tax (SDLT) anti-avoidance scheme that has been widely used by residential purchasers has been stopped by measures announced in the Budget. The scheme broadly involved the purchaser granting an option simultaneously with completion of the acquisition of the property to an unconnected third party, exercisable many years in the future. The … Continue reading More on the sub-sale and other general SDLT anti-avoidance measures
Following recent publicity surrounding a certain UK bank avoiding tax on a purchase of own debt the odds could only have shortened on the introduction of a GAAR. But it might be that the die was cast somewhat earlier when the Court of Appeal found for the taxpayer in the case of Mayes. In the context of a highly engineered … Continue reading Towards a General Anti-Abuse Rule
The Government is persuaded that a general anti-avoidance rule should be introduced. This is proposed for 2013 following a further period of consultation.
In June 2010, “Tax policy making: a new approach” was published by HMRC and the Treasury. This consultation paper set out the Government’s approach to maximising the prevention of avoidance. Following on from that paper, the Government has proposed a number of measures, and provided further explanation of the four categories of work that it … Continue reading Tackling tax avoidance