CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Corporation Tax Dodge Closed by UK Government

Corporation Tax Dodge Closed by UK Government

By Amanda Banks, Tax-News.com, London

27 December 2012


The British government has used new Targeted Anti-Avoidance Rules aimed at trade and property businesses to close down a scheme which it says was being marketed as a way to reduce corporation tax by exploiting rules that allow certain types of expenditure to be deducted automatically from profits.

New legislative amendments due to be included in the Finance Bill 2013, but effective from December 21, 2012, reverse the order of priority in determining whether a deduction is allowable, so that rules giving tax relief no longer have priority over rules prohibiting deductions.

According to HM Revenue and Customs (HMRC), the measure is expected to increase revenue by around GBP10m per annum, and "a number of small firms may be expected to be affected."

The Treasury has declined to name the scheme or give further information about it. However,Exchequer Secretary David Gauke has been quoted as saying that: "This Government has made it very clear that we will not put up with tax avoidance which uses artificial structures to aggressively exploit rules contrary to Parliament's intended purpose. Within days of HMRC being notified of the existence of this scheme we took decisive steps to shut it down once and for all."

TAGS: tax | tax avoidance | commerce | real-estate | United Kingdom | legislation | HM Revenue and Customs (HMRC) | HM Revenue and Customs (HMRC) | legislation amendments

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »