Income shifting consultation: Q2

07 February 2008

Categories: Income Tax

Would the legislation capture situations that are not within the aim of removing the tax advantage gained by income shifting? If so, the Government would welcome examples, an explanation of why you believe these situations are not within the aim of the legislation and, if possible, any suggestions on how these situations may be effectively excluded from the legislation.

This is the section where advisers should really be able to make an impact, by giving details of typical client scenarios (without, of course, breaching client confidentiality) where there would appear to be either no attempt to avoid tax, or a legitimate attempt to organise affairs tax efficiently but with no aggressive avoidance.

In particular, the examples given by HMRC tend to involve a snapshot of a business at one particular time. You may want to highlight examples of changes that happen in such businesses over time, which might bring the income shifting rules into play.

Please provide your comments in the Discussion section below. (There will be a short delay before they appear on the site.)

If you do not have a log-in, email your remarks to Taxation@lexisnexis.co.uk

Categories: Income Tax