The UK Budget for 2015 will introduce new measures on tax avoidance, particularly where there are "contrived loss arrangements" used to cut corporate tax bills. This will be directed at previous year trading loss reliefs which will be curbed or abolished. In addition, the Treasury intends to require the users of tax avoidance schemes which are challenged to make upfront tax payments of the disputed amounts. The area of concern for professional advisors is the penalties to be levied on those that promote "abusive" anti avoidance schemes. Question is: what exactly is an "abusive" scheme? I think the Treasury's answer will be that you will know it when you see it.
Other anti-avoidance and evasion measures in the Budget included:The government will consult on proposals to introduce “new information disclosure and penalty powers” to make it more difficult for the promoters of “abusive” schemes to continue to market them in the future.tougher measures for those who persistently enter into tax avoidance schemes which fail ‘serial avoiders’, including a special reporting requirement and a surcharge on those whose latest tax return is inaccurate as a result of a further failed avoidance scheme.Stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence.