.png)
.png)
A tale of two avoidance schemes
Key points
- In 2013 there were in effect two marketed tax schemes – sideways loss relief and disguised remuneration.
- Several court decisions ruled that sideways loss relief schemes were ineffective from a tax law perspective.
- There have been criminal prosecutions of people who operated these schemes.
- HMRC has won two cases – Rangers and Aberdeen Asset Management – on disguised remuneration and that was on the PAYE argument.
- The loan charge has helped promoters with the argument that nothing was wrong until HMRC changed the law retrospectively.
The tax avoidance industry has been through a remarkable transformation over the past decade. Ten years ago there were only two tax avoidance schemes that were sold to individuals in any volume: sideways loss relief schemes and disguised remuneration schemes. According to HMRC figures in the 2013-2014 tax year 35% of all users of tax avoidance schemes – 8 500 people...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
