New Tax Avoidance Scheme - Utilising CGT & ER

[eazy]

Capital Gains Tax: Entrepreneurs’ Relief tax avoidance scheme
https://www.gov.uk/guidance/capital-...oidance-scheme

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<mod snip> If you want to read the full article, go to Accountingweb.

http://www.accountingweb.co.uk/tax/b...me-highlighted

[ChimpMaster]

Step 1: A taxpayer who owns a personal service company (PSC) in the UK sells that company to an organisation based in Cyprus

I kinda stopped reading at that point

[BrilloPad]

If HMRC are so convinced this is contrived then they should close down however is marketing the scheme and anyone(especially lawyers) who has advised them.

They would rather spend no money, leave it several years, then bully anyone who has used the scheme.

[SomeDude]

If HMRC are so convinced this is contrived then they should close down however is marketing the scheme and anyone(especially lawyers) who has advised them.

They would rather spend no money, leave it several years, then bully anyone who has used the scheme.

Oh, but at least they did "something" in this case - they made a nice small webpage to let people know that they actually don't like this type of scheme.

For loan schemes it took them more then well over 10 years of schemes being in operation, and they only made similar webpage after they sent out most of the APNs, after most users were already long out, and most major schemes closed down (it was August or September last year, I believe).

[SueEllen]

If HMRC are so convinced this is contrived then they should close down however is marketing the scheme and anyone(especially lawyers) who has advised them.

They would rather spend no money, leave it several years, then bully anyone who has used the scheme.

Solicitors aren't stupid. They will simply be doing an Anjem Choudary on them e.g. just staying the right side of the law.

[eek]

Step 1: A taxpayer who owns a personal service company (PSC) in the UK sells that company to an organisation based in Cyprus

I kinda stopped reading at that point

You should have continued reading.... The bit where you claim Entrepreneurs relief every month is a classic and HMRC's attempt at understatement "HMRC considers this scheme to be highly contrived".

No tulip, sherlock...

[BrilloPad]

Solicitors aren't stupid. They will simply be doing an Anjem Choudary on them e.g. just staying the right side of the law.

HMRC make the law. And can change it retrospectively. They have more powers than the police and can raid anyone at any time. They dont even have to prosecute. They can just make a solicitors life hell.

HMRC like to prey on the softer targets though. Soon ALL "contractors" will be targets.

[LondonManc]

HMRC considers it a scheme. Do you need to know any more?

If it's a scheme, the middleman gets away with it and the contractor gets shafted. You may as well ask for the lube when you sign up.

[BrilloPad]

HMRC considers it a scheme. Do you need to know any more?

If it's a scheme, the middleman gets away with it and the contractor gets shafted. You may as well ask for the lube when you sign up.

Not everyone reads CUK. Life would be so much better if all contractors did.

[ChimpMaster]

Not everyone reads CUK. Life would be so much better if all contractors did.

Not everyone takes advice, especially if they are naïve, greedy or just plain stupid - especially since 2008/9.

I used to contract in an IB a few years ago where dozens of contractors were using one scheme or another, for example Steed, as well as a host of others that have no doubt long since disappeared. A contractor who had been using a Ltd was tempted to join a very dodgy looking scheme (their website even had numerous spelling mistakes!) and this was around 2008 when the whole DOTAS thing was taking off.

I strongly advised her against this and explained why, but my warning was not heeded; she had already been blinded by the promise of 90% returns and the fact that 'everyone else was doing it'. I hate to think what has become of them all now.