HMRC fails to halt £10bn of tax avoidance schemes

Jenna Towler
clock

HM Revenue & Customs (HMRC) has failed to halt the widespread use of "highly contrived" tax avoidance schemes, according to a National Audit Office (NAO) report.

HMRC has 41,000 open avoidance cases on its books and the schemes are thought to cost the exchequer £10bn in lost tax. The NAO said while the tax advance disclosure regime - brought in in 2004 - has helped the department make some important headway avoidance schemes are still being used by large numbers of taxpayers. It said in each of the last four years, more than 100 new avoidance schemes have been disclosed to HMRC. "While HMRC believes most of these would be defeated if tested in the courts, there is no evidence that their usage is reducing." the report added. Some 30,000 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA's SDR regulation will 'make advisers sit up and listen'

FCA's SDR regulation will 'make advisers sit up and listen'

‘There has to be a fundamental re-educating of the adviser community’

Isabel Baxter
clock 30 November 2023 • 4 min read
Advice/guidance boundary review will help 'bridge advice gap'

Advice/guidance boundary review will help 'bridge advice gap'

The FCA’s latest update leads to mixed reactions from the industry

Sahar Nazir
clock 04 August 2023 • 4 min read
FCA review confirms investment pathways working 'as intended'

FCA review confirms investment pathways working 'as intended'

No changes to initiative but industry called to better support savers

Holly Roach
clock 12 July 2023 • 3 min read