IHT—anti-avoidance provisions

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • IHT—anti-avoidance provisions
  • Excluded property and domicile status
  • Gifts with reservation of benefit (GROB or GWR)
  • Pre-owned asset tax (POAT)
  • Taxation of capital gains
  • Same day additions to multiple trusts (pilot trusts)
  • Disclosure of tax avoidance schemes (DOTAS)
  • Serial tax avoidance regime (STAR)
  • Promoters and enablers of tax avoidance schemes
  • General anti-abuse rule (GAAR)

IHT—anti-avoidance provisions

STOP PRESS relating to Finance Act 2021: Finance Act 2021 (FA 2021) contains a number of measures, taking effect from Royal Assent on 10 June 2021, to take further action against those who promote and market tax avoidance schemes. These include strengthening information powers for HMRC’s existing regime to tackle enablers of tax avoidance schemes,  enabling HMRC to act promptly where promoters fail to disclose their avoidance schemes, allowing HMRC to stop promoters from marketing and selling avoidance schemes earlier, making further technical amendments to the POTAS regime and making additional changes to the General Anti-Abuse Rule (GAAR). On 23 March 2021, the government published draft guidance to be read alongside the legislation. For more information, see News Analysis: Spring Budget 2021—Private Client analysis — Tackling promoters of tax avoidance and for more information on the draft clauses that were published in July 2020, see News Analysis: Draft Finance Bill 2020–21—Private Client analysis—Promoters and enablers of tax avoidance schemes. See also Practice Note: Tax—Finance Act 2021—progress through Parliament [Archived].

Following a consultation which ran from 16 December 2020 to 27 January 2021, FA 2021 also contains measures, again taking effect from Royal Assent, to reduce the penalties that may be charged to people receiving follower notices as a result of using tax avoidance schemes, from 50% to 30% of the tax under dispute. A

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