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Issue:
4911
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Categories:
Comment & Analysis
, HMRC investigations
, ITA 2007
, TCGA 1992
, Income Tax
Clearing a path through
Key points
- A system of statutory clearances allows for specified transactions to be described to HMRC before they are implemented to get their view.
- A transactions in securities clearance confirms that a share disposal should be subject to capital gains tax and not dividend rates on income.
- A TCGA 1992 s 138 clearance asks that HMRC will not apply s 137 to a set of transactions on the basis that the arrangements are bona fide commercial.
- The clearance is only saying that HMRC will not apply the anti-avoidance provisions to tax the proposed transactions.
- It is crucial to plan well and prepare a detailed clearance application under the correct provisions.
Albert Einstein once said: ‘The hardest thing in the world to understand is the income tax.’ One can imagine that were he to look at the tax system today his observation would be the same. It is a complex world...
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