Emergency Budget 2010: Tax avoidanceWednesday, June 23rd, 2010
Various consultations and legislative measures are to be introduced to close down tax avoidance schemes. These include:
- “geared growth arrangements” for employment-related shares and securities
- arrangements using trusts and complex intermediary structures to avoid tax and NICs on earnings and restrictions on pensions tax relief
- schemes that involve profits arising to a company from a financial asset falling out of account for tax from the “derecognition” of a loan or derivative
- schemes that use Authorised Investment Funds to create a credit for UK tax where no UK tax has been paid.
Descriptions of Hallmarks
The measures included in Finance Act 2010 to strengthen and enhance the Disclosure of Tax Avoidance Schemes (DOTAS) Regime will be implemented in autumn 2010. One proposed measure, namely changes to the “hallmarks”, the descriptions of schemes required to be disclosed, was not included in that Act but will be developed further with a view to it being introduced from 2011/12 in tandem with the wider development of tax policy in the areas affected.