The main announcements for all evasion, avoidance and debt recovery, are shown below. More details can be found in the Overview of Tax Legislation and Rates (OOTLAR) (PDF 1.3MB) document.
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This report highlights the successes HMRC has had in tackling avoidance, evasion, criminal attack and debt since 2010.
Levelling the tax playing field - HMRC Compliance Strategy (PDF 1MB)
HMRC has published its offshore evasion strategy 'No safe havens'. This strategy sets out a coherent and coordinated framework for HMRC's approach to tackling offshore evasion. More information about specific Tax Agreements with Isle of Man, Jersey and Guernsey can be found at item 11 below.
No Safe Havens - HMRC Offshore Evasion
Strategy (PDF 3.27MB)
Replaced on 21 March 2013 with this version which includes a change to
remove an inaccuracy in the diagrams and images.
Legislation will be introduced in Finance Bill 2013 to prevent 'loss buying', where companies pass the potential to gain access to corporation tax relief to unconnected third parties. The legislation will:
These changes have effect from 20 March 2013.
Corporation Tax - 'Targeted Loss Buying' Rules - Technical note (PDF 72K)
Corporation tax loss relief: anti-avoidance (PDF 40K)
Legislation will also be introduced to address arrangements which seek to circumvent the longstanding loss buying rules in Part 14 of CTA 2010. In particular the rules will cover reliefs, deductions, allowances and expenses for which it is possible to dictate or predict in advance the timing of their 'crystallisation' since, where timing can be dictated or predicted, ownership or part ownership changes can take place in advance of the crystallisation of the loss enabling the current anti-'loss buying' rules in Part 14 of CTA 2010 to be bypassed.
The Government therefore proposes, in certain circumstances, to bring the tax treatment of unrealised loss, involved in a transfer between unconnected parties, more closely into line with the longstanding treatment of realised losses. The proposed changes will introduce three separate rules to combat 'loss buying' which, when triggered, will not remove the ability to relieve relevant losses but merely stop their set-off against other profits (including by way of group relief).
This will also have effect from 20 March 2013.
Corporation Tax - 'loss loophole closure' rules - Technical note (PDF 70K)
Corporation tax loss relief: anti-avoidance (PDF 40K)
Legislation will be introduced in Finance Bill 2013 to close three loopholes used to attempt to avoid the tax charge on close company loans to their participators. The changes will:
These changes will have effect for loans, payments, repayments and repayment arrangements made on or after 20 March 2013.
Close Company Loans to Participators (Loophole Closures) - Technical Note (PDF 69K)
Loans from close companies to their participators (PDF 48K)
Legislation will be introduced in Finance Bill 2013 to clarify the rules that determine the availability of corporation tax deductions in connection with share options or awards granted to employees.
This legislation will have effect from 20 March 2013 in relation to company accounting periods ending on or after that date.
Corporation tax deductions for employee share acquisitions (PDF 37K)
Legislation will be introduced in Finance Bill 2013 to put beyond doubt that certain SDLT avoidance schemes that abuse the transfer of rights rules do not work.
These changes will have retrospective effect to 21 March 2012.
Stamp duty land tax avoidance (PDF 47K)
Legislation will be introduced in Finance Bill 2013 for a GAAR to counteract tax advantages arising from abusive tax avoidance schemes. The GAAR will apply to income tax, corporation tax (and amounts treated as corporation tax), CGT, inheritance tax, SDLT, the annual tax on enveloped dwellings and petroleum revenue tax.
General anti-abuse rule (GAAR) (PDF 47K)
As announced on 21 December 2012, the Government will introduce targeted anti-avoidance rules (TAARs) to the income tax and corporation tax provisions governing the relationship between the rules prohibiting and allowing deductions, with effect from that date. Legislation will be in Finance Bill 2013.
Following the consultation announced at Autumn Statement 2012, the Government has confirmed that from 1 April 2013 suppliers to central government will have to certify tax compliance when bidding for Government contracts. The responses to the consultation are published today.
Tax and Procurement - Summary of Consultation Responses (PDF 70K)
The UK has agreed a comprehensive package of measures with the Isle of Man, Guernsey and Jersey governments to clamp down on those who choose to hide their money offshore. This demonstrates the commitment of all parties to tackle tax evasion.
The package consists of:
HMRC has signed Memoranda of Understanding with each of the Crown Dependencies.
Memorandum of Understanding between HMRC and the Isle of Man (PDF 641K)
Memorandum of Understanding between HMRC and
Guernsey (PDF 613K)
Replaced on 21 March 2013 with this version which is an exact copy of
the signed and dated agreement.
Memorandum of Understanding between HMRC and
Jersey (PDF 417K)
Replaced on 21 March 2013 with this version which is an exact copy of
the signed and dated agreement.
HMRC has also published its offshore evasion strategy 'No safe havens'. This strategy sets out a coherent and coordinated framework for HMRC's approach to tackling offshore evasion.
No Safe Havens - HMRC Offshore Evasion
Strategy (PDF 3.27MB)
Replaced on 21 March 2013 with this version which includes a change to
remove an inaccuracy in the diagrams and images.
The misuse of the partnership rules has been a feature of many avoidance schemes closed down in recent years. The Government announced in Autumn Statement 2012 that it would consider whether partnerships should be reviewed, as part of the rolling examination of high risk areas of the tax code. The Government has now announced that it will consult on measures to:
A consultation document will be published with proposals to address both issues in the spring, with legislation to be introduced in Finance Bill 2014.
The Government will consult this summer on a package of information powers, penalties and other measures for tackling the behaviour of high-risk promoters of tax avoidance schemes, with a view to bringing forward legislation in Finance Bill 2014.
The Government will consult on strengthening obligations to ensure the correct income tax and NICs are paid by offshore employment intermediaries, with a view to legislating in Finance Bill 2014. This is a result of the review announced in Autumn Statement 2012.
A package of measures has been announced and more information will be published later in the year.
The Government will consult on improving its collection of tax debts through the PAYE system (coding out), to make the process fairer and more equitable. This will include increasing the size of debts that can be recovered through coding out from those with higher incomes. Changes will be made through secondary legislation in due course.
HMRC will increase the use of Charging Orders, used to secure a tax debt against a debtor's assets.
HMRC will improve its ability to target resources in collecting tax debt by making new connections between the Department's datasets.
HMRC will update its telephone system to allow tax debts to be paid via an automated process.
