Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/3/2012

United Kingdom - Proposal to reform anti-avoidance provisions 

August 3: HM Revenue & Customs (HMRC) published a consultation document concerning two anti-avoidance provisions:
  • The attribution of gains to members of closely controlled non -resident companies
  • The transfer of assets abroad

Consultation document

The consultation document—issued after "reasoned opinions" from the European Commission in February 2011—includes proposals to:


  • Introduce an “avoidance motive test” and expand the categories of assets excluded under section 13 TCGA 1992, by introducing a new exclusion test that concerns economic activity
  • Add to the “transfer of assets” provisions a further exemption test based on objective criteria—one that would exclude income from a transfer of assets charge when it is attributable to an arm's length transaction carried out for the purposes of real economic activity overseas
  • Make other improvements to the two regimes

The consultation document includes draft legislation for inclusion in Finance Bill 2013.


The substantive changes would be effective from 6 April 2012.


The consultation includes specific questions on which HMRC is seeking comments by 22 October 2012.


Read an August 2012 report [PDF 193 KB] prepared by the KPMG member firm in the United Kingdom: Weekly Tax Matters (3 August 2012)


Other topics discussed include:


  • An Office of Tax Simplification report on its review of unapproved employee share plans
  • New tax transparent fund and restructuring provisions from HM Treasury
  • VAT: An opinion on "zero rating" and the future of VAT



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