Primarolo Hits Out At Tax Professionals Over Finance Bill

by Robin Pilgrim, for LawAndTax-News.com, London

15 July 2004

Unveiling the final report and third reading stages of the UK Finance Bill in the House of Commons this week, the UK's Paymaster General Dawn Primarolo expressed frustration at the efforts of tax and legal professionals to circumvent anti-avoidance provisions contained in the bill before it even becomes law.

"That is the bind we are in: the government consults and publishes a bill, and while it is making progress through the various stages, other people are planning on how to negate it," she explained.

In order to counter such efforts, Ms Primarolo launched the third reading of the Finance Bill alongside three provisions designed to extend its anti-avoidance scope.

These were:

• A clause banning "aggressive new avoidance schemes" which attempt to breach the rules contained in the Bill relating to sale and finance lease-back and lease and finance lease-back as they pertain to the sale of rental streams;
• Provisions designed to prevent firms from avoiding corporate taxes by entering into various artificial arrangements; and
• The placing of a ban on the manipulation of gifts of shares to charities in such a way that the donor achieves tax relief in excess of the benefit of the gift to the recipient.

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