Commentary

A7.405 HMRC's anti-avoidance spotlights

Administration and compliance

A7.405 HMRC's anti-avoidance spotlights

A7.405 HMRC's anti-avoidance spotlights

In April 2009 HMRC initiated a system of announcements to counter tax avoidance. On the spotlights area of the HMRC website (Tax avoidance schemes currently in the spotlight (numbers 1 to 19) and Tax avoidance schemes currently in the spotlight (number 20 onwards)) it identifies examples of tax avoidance schemes that it has reason to believe are ineffective. The spotlight announcement sometimes includes an indication of the date from which countering legislation will apply. HMRC warns that only a minority of schemes appear in Spotlights and a scheme that has not been featured may still be challenged.

The following direct tax areas have been subject to a spotlight announcement (details of indirect taxes can be found on the links above):

Spotlight for direct taxesSummary
Spotlight 1: corporation tax relief for goodwill acquired from a related party This concerns arrangements to claim corporation tax relief for goodwill under the corporate intangible fixed asset regime where a company has acquired a business that was carried on by a related party before commencement of the regime (1 April 2002). Legislation applies from 22 April 2009 to counter the arrangements and is deemed to have always had effect for the purposes of applying the legislation after that date, but HMRC will continue to challenge past claims. For further narrative see Division D1.6.
Spotlight 3: pension schemes creating artificial surplusThese are schemes that purport to enable a member of a registered pension scheme to remove funds from the scheme

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial