Simplifying anti-avoidance legislation - feedback questions

The following questions relate to the specific reviews mentioned in Chapter 2.

Most of the questions can be answered 'yes' or 'no', but there is an opportunity to provide more detailed comments in the text box following each question. For example, for the first question, if your answer is yes, it would be useful if you could explain what you think any replacement rules should target and why. Alternatively if you answer no it would be equally useful to understand your views.

Review of the 'Transactions in Securities' legislation (Sections 703 to 709 ICTA and Chapter 1 Part 13 ITA)
Please select options as appropriate
Q1. Do you consider that administrative burdens on business would be reduced if the transactions in securities legislation were replaced with Targeted Anti-Avoidance Rules and guidance?
   
   
 
   
       
   
Q2. Do you consider that the transactions in securities legislation should be kept, but subjected to modest amendment?
   
   
 
   
       
   
Q3. Would more targeted anti-avoidance legislation reduce the need to make a clearance application?
   
   
 
   
       
   
Q4. Would the need to make clearances be reduced if the statutory clearance procedure in s707 ICTA and s701 ITA 2007 were replaced by a non-statutory procedure requiring applicants to demonstrate genuine uncertainty over whether the transactions in securities legislation applies?
   
   
 
   
       
   
Q5. Are there benefits to incorporating the s703 legislation within the self assessment regime?
   
   
 
   
       
 

Review of Unallowable Purpose Tests in Tax Legislation
Please select options as appropriate
 
Q6. In your experience, does business incur significant costs in considering whether anti-avoidance purpose rules apply?
   
   
 
   
       
   
Q7. Do you consider anti-avoidance purpose rules difficult to understand?
   
   
 
   
       
   
Q8. Is understanding of anti-avoidance purpose rules hindered by the differences between them?
   
   
 
   
       
   
Q9. Would it be easier to understand purpose rules if the legislation itself explained how the test of purpose is to be determined?
   
   
 
   
       
   
Q10. Would it be helpful if passing a test of purpose for one rule meant the test of purpose for all rules would be passed?
   
   
 
   
       
 
Q11. Are there some unallowable purposes rules that you find easier to apply than others?
   
   
 
   
       
 

Review of certain rules relating to shares acquired by employees (Part 7 of the Income Tax (Earnings and Pensions) Act 2003)
Please select options as appropriate
   
Q12. Do you consider that the candidates identified for simplification in Chapter 2 will have a positive impact on reducing administrative burdens for business?
   
   
 
   
       
   
Q13. Do you consider that the candidates identified for simplification will have a positive impact on creating certainty within the employment related securities legislation?
   
   
 
   
       
   
Q14. Do you consider that the candidates identified for simplification will have a positive impact on creating fairness within the employment related securities legislation?
   
   
 
   
       
   
Q15. Would business prefer a statutory share identification rule for employment related securities rather than the non-statutory basis currently being used?
   
   
 
   
       
   
Q16. Are there any of the candidates for simplification which you consider unattractive to business and would not like us to take forward?
   
   
 
   
       

 

How to comment

In addition to the questions set out above we also welcome comments on any aspect of this update.

You should aim to send in your responses or comments by 30 September 2008. They can be sent:

  • by e-mail;
  • by post to: HMRC, Business Customer Unit, Room 3/46, 100 Parliament Street, London SW1A 2BQ;
  • or by fax to: 0207 147 0128.

The Anti Avoidance Simplification team can be contacted by telephone on 0207 147 3684.

Confidentiality

Any information provided in response to this update paper, including personal information, may be published or disclosed in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2000 (FOIA), the Data Protection Act 1998 (DPA) and the Environmental Information Regulations 2004.

If you want the information that you provide to be treated as confidential, please be aware that, under the FOIA, there is a statutory Code of Practice with which public authorities must comply and which deals, amongst other things, with obligations of confidence. In view of this it would be helpful if you could explain to us why you regard the information you have provided as confidential. If we receive a request for disclosure of the information we will take full account of your explanation, but we cannot give an assurance that confidentiality can be maintained in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on the Department.

The Department will process your personal data in accordance with the DPA and, in the majority of circumstances; this will mean that your personal data will not be disclosed to third parties.

Any FOIA queries should be directed to the Review Team, using the contact details above.