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| Further tax avoidance schemes blocked |
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The government is taking action to block tax avoidance under certain artificial avoidance schemes. Over recent months HMRC have become aware of an artificial and aggressive avoidance scheme that seeks to abuse tax reliefs available for employment-related liabilities incurred by employees and former employees. The government does not accept that these highly contrived arrangements have the effect that is sought, however to put the matter beyond doubt a written ministerial statement has been made in Parliament confirming that the government proposes to introduce appropriate legislation in the 2009 Finance Bill that will be effective from 12 January 2009. Broadly, the new legislation will prevent tax deductions being allowed where liabilities relating to an employment are incurred by employees and former employees for the main purpose of the avoidance of tax. The legislation will not affect genuine cases where tax avoidance arrangements are not involved. Details of the new measure are contained in a HMRC Technical Note, which can be viewed on the HMRC website at http://www.hmrc.gov.uk/news/pta-technote.htm. |
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Tuesday, 13 January 2009 | 3160 Hits |
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