The topic of tax-avoidance is never very far away from the news and yesterday Nick Clegg hinted that an “anti-avoidance” tax rule would be in the Budget. He told BBC Radio 4: “I think there are millions of people... who pay their taxes, who work hard, who aspire to do the right things for themselves and their families, who are quite rightly angered there is a wealthy elite of large businesses who can pay an army of tax accountants to get out of paying their fair share of tax. They basically see paying tax as an optional extra, they pick and choose the taxes they pay. There should be a general rule that you can't play the system, you can't abuse the system."  

This was backed up later in the day by the Prime Minister who said: “A tougher approach is needed towards larger firms with fancy corporate lawyers”.

The Coalition has pledged to do more to stop tax avoidance by big companies and individuals avoiding stamp duty on their homes.  Graham Aaronson QC, who has taken the lead in reporting to the Government in respect of a general anti tax-avoidance rule (GAAR), has recently recommended that a GAAR should be narrowly focused at “highly abusive, contrived, artificial and egregious schemes” but designed not to affect “responsible tax planning”.

For more information on the difference of tax evasion, avoidance and planning, please read our guide at:

http://www.randall-payne.co.uk/tax planning/Tax_planning.html

For further information:
Chris Mattos, Partner, Randall & Payne, Tel: 01453 763471