Guidance Published On UK’s New Tax Disclosure Rules

by Robert Lee, Tax-News.com, London

02 August 2004

The Inland Revenue has published guidance on the new disclosure regime announced in this year’s budget, which is designed to prevent firms using illegal tax planning methods.

The disclosure rules will provide businesses with much-needed certainty on the issue, whilst providing the Inland Revenue with earlier information about potential tax avoidance schemes.

This will enable the government, in the words of the Revenue, to make a “swifter and better-targeted response” to the creation of “contrived and artificial schemes whose main purpose is to avoid tax.”

Announcing the new guidance, Paymaster General Dawn Primarolo stated:

"The disclosure rules are a vital part of the battle against tax avoidance and will help stop the small minority of individuals and businesses who abuse the tax system at the expense of those who pay their fair share.

The new disclosure rules take effect on 1 August 2004. Transitional arrangements were announced on 22 June, which will allow extra time for disclosures to be made when the rules first come into operation.

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