Anti-avoidance - listed tax avoidance measures
The Government is determined to prevent the use of certain tax avoidance measures and ensure that there is a no cash flow benefit from participating. Schemes which have been defeated in the courts or which (on independent advice) have been identified as failing to deliver any tax advantages will be listed in regulations, with 'statutory consequences' (late payment penalties) attached to their use.
Who will be affected?
Individuals, companies and/or trusts participating in certain listed tax avoidance schemes.
A consultation document will be published in May 2011 with the intent that the relevant legislation will be introduced with effect from 6 April 2012.
This measure is designed to prevent any cash flow advantage from being achieved by those participating in tax avoidance arrangements which have already been identified as ineffective. Such measures are entirely unobjectionable.