following HMRC's defeat in the House of Lords in Jones v Garnett [2007] UKHL 35
.
The new legislation will take effect from 6 April 2008 and will apply to income received after that date even if the income relates to an earlier tax year.
The consultation period ends on 28 February 2008.
The new income shifting regime will have a significant impact on the 65,000 companies and 20,000 partnerships that HMRC estimates are engaging in income shifting.