Financial products avoidance: status update | Practical Law
On 28 April 2008, HMRC published an update on the status of its consultation on a proposed "principles-based" approach to financial products tax avoidance.
On 28 April 2008, HMRC published an update on the status of its consultation on a proposed "principles-based" approach to financial products tax avoidance.
HMRC has now announced that two documents will be issued in May, setting out how this consultation is to proceed:
1. The first document will cover transfers of income streams. The document will contain revised draft legislation and explain how this deals with matters that have been raised during the consultation.
2. The second document will cover disguised interest. HMRC notes that this area is likely to require greater taxpayer input than the transfer of income streams. The document will summarise responses to the consultation to date and include proposals intended to address concerns about the scope and effect of the legislation.
Both documents will include a provisional timetable for the continuing work on these measures and explain what form the consultation will take.