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HMRC have published a consultation on the reform of two anti-avoidance provisions.
The first, TCGA 1992, s 13, prevents UK resident taxpayers keeping assets outside the scope of capital gains tax by holding them through a closely controlled company resident abroad.
The second, ITA 2007, Part 13 Chapter 2, introduced in its original form in Finance Act 1936, stops UK ordinarily resident taxpayers avoiding income tax by transferring assets overseas .
The consultation is necessary in light of the European Commission’s view that the measures are ‘disproportionate’ and are incompatible with the treaty freedoms of the single market.
The government’s proposed reforms hope to strike a better balance between protecting tax receipts and allowing individuals to pursue genuine economic activity across borders.
Comments should be emailed no later than 22 October.
