HMRC to list high-risk tax avoidance schemes

Date: 1st June 2011

HM Revenue & Customs (HMRC) has announced that it is to publish a list of high risk tax avoidance schemes.

The department has launched a consultation proposing to list tax avoidance schemes that are unlikely to deliver the tax savings they boast.

David Gauke, exchequer secretary to the Treasury, said: "These are highly aggressive and artificial tax avoidance schemes which we want to stop. For too long, wealthy taxpayers were using these schemes as a cheap loan from government. Our proposals would stop this practice, reducing the cost of HMRC's interventions and ensuring a fairer tax system.

"We really want to hear the views of tax advisers and professional bodies."

Under the proposals, users of listed schemes would be required to disclose them to HMRC and would be subject to additional charges for underpaid tax.

The move could encourage a number of small business owners to seek the assistance of a specialist tax accountancy service in order to ensure all their affairs are in order.

Posted by Jacob Williams