Budget 2012

[JamJarST]

As did the chancellor in his speech yesterday mentioning evasion and avoidance in pretty much the same sentence.

Really winds me up it does. If you're going to go down that road then paying into a pension is tax evasion after all - you're paying into the pension and not then paying tax on it because it suits you....

Couldn't agree more!! That mealy mouthed scumbag millionaire Osborne was on radio 4 this morning and they asked him about his stance on tax avoidance which they rightly pointed out is legal and he said that he referred to "aggressive" avoidance?!? WTF is aggressive avoidance. Typical politician, he is such a hypocrite claiming that he doesn't benefit from the change to the 50p rate, that must be because he is aggressively avoiding tax.

[russell]

Couldn't agree more!! That mealy mouthed scumbag millionaire Osborne was on radio 4 this morning and they asked him about his stance on tax avoidance which they rightly pointed out is legal and he said that he referred to "aggressive" avoidance?!? WTF is aggressive avoidance. Typical politician, he is such a hypocrite claiming that he doesn't benefit from the change to the 50p rate, that must be because he is aggressively avoiding tax.

'I'm not wealthy enough to pay the 50p tax rate' claims George Osborne (who earns minister's salary, rents out Notting Hill home and has 15% stake in the family business) | Mail Online

[Vallah]

Couldn't agree more!! That mealy mouthed scumbag millionaire Osborne was on radio 4 this morning and they asked him about his stance on tax avoidance which they rightly pointed out is legal and he said that he referred to "aggressive" avoidance?!? WTF is aggressive avoidance. Typical politician, he is such a hypocrite claiming that he doesn't benefit from the change to the 50p rate, that must be because he is aggressively avoiding tax.

Not only this, but the GAAR report as currently stated makes no distinction between any sort of avoidance, either "good" or "bad". Even buying an ISA would theoretically be caught.

[simondolan]

Not only this, but the GAAR report as currently stated makes no distinction between any sort of avoidance, either "good" or "bad". Even buying an ISA would theoretically be caught.

It does - it goes to quite some lengths to do exactly that and also puts the benefit of proving the "aggressiveness" on the Revenue.

Among others from the Aaronson report:

"I have concluded that a GAAR which is appropriate for the UK must be
driven by an overarching principle. This is that it should target those
highly abusive contrived and artificial schemes which are widely
regarded as intolerable, but that it should not affect the large centre
ground of responsible tax planning. "

[BlasterBates]

Not only this, but the GAAR report as currently stated makes no distinction between any sort of avoidance, either "good" or "bad". Even buying an ISA would theoretically be caught.

A bit far fetched. Can't imagine they'll go around the millions of people asking for tax back for putting a bit away for their pension. Nor will they go round demanding tax back because you used a different form of depreciation.

They'll be targeting all forms of avoidance which entail bending the rules. I would imagine EBT's would be a high priority.

[LisaContractorUmbrella]

Courtesy of Saffrey Champness re: avoidance

ANTI-AVOIDANCE
6.1 Disclosure of Tax Avoidance Schemes (‘DOTAS’)
Tax avoidance schemes meeting certain conditions (or “hallmarks”) must be notified to
HMRC as soon as they are marketed by scheme promoters.
The Government will consult on extending these hallmarks to cover avoidance schemes
that do not currently have to be notified under the rules.

6.2 General Anti-Avoidance Rule (‘GAAR’)
In November 2011, Graham Aaronson QC produced his proposals for a General AntiAvoidance Rule (‘GAAR’). He concluded that a GAAR could be introduced to counter
tax avoidance, but only if it:
 was clearly targeted at contrived and artificial schemes
 provided safeguards for legitimate tax planning
 reduced the specific anti-avoidance provisions contained elsewhere in the tax
legislation.


The burden of proof would lie with HMRC and published guidance notes would be taken
into account in determining whether the GAAR applied.
The Government has agreed that a GAAR should be introduced and a consultation
document will be issued in summer 2012, with a view to legislation in 2013. The
Government has stated that the GAAR will be based on Aaronson’s proposals, but has not
yet confirmed whether other anti-avoidance provisions will be repealed.

6.3 Changes to anti-avoidance provisions applying to offshore structures
The Government will be consulting on draft legislation to reform the anti-avoidance
provisions relating to the transfer of assets abroad and the attribution of gains to members
of non-resident companies. Gains from furnished holiday let properties will become
eligible for exemption from a capital gains tax charge. The amendments will be included in
the Finance Bill 2013.

6.4 Other anti-avoidance measures
The following other anti-avoidance measures to combat particular marketed tax avoidance
schemes were announced:
 various technical improvements will be made to current anti-avoidance rules to
combat tax schemes which generate capital allowances. Some of these new changes
took effect on 12 August 2011, the remainder will come into force on 6 April 2012
 a scheme which seeks to avoid SDLT via use of sub-sales and an option to purchase
land will be closed with effect from 21 March 2012. HMRC’s view is that the
scheme did not work in any event, but the new legislation is intended to put the
matter beyond doubt
 another scheme involving the purchase of offshore trusts by UK domiciled
individuals to reduce inheritance tax is to be closed
 a scheme which used existing anti-avoidance rules to allow personal income to be
taxed at corporate rates will be closed
 two schemes involving life insurance investment bonds, which involve gains being
deferred or avoided altogether are to be closed
 two schemes involving relief for losses arising after the end of a trade or property
rental business were closed with effect from 12 January 2012 and 13 March 2012,
and the legislation will be included in the Finance Bill 2012
 a scheme involving property business losses relating to agricultural property was
also closed with effect from 13 March 2012. This is also to be in the Finance Bill.
Except as referred to above, the legislation closing the various tax avoidance schemes will
take effect from 21 March 2012.