Budget 2011: Govt tightens tax avoidance loopholes

Some high risk schemes exploit a cash flow advantage of retaining tax whilst continuing to dispute a liability. This advantage results from tax and interest only becoming payable under some tax regimes once HMRC has proven each use of a scheme to fail. The government plans to remove the cash flow advantage of using such avoidance schemes. It will also bring forward proposals to list specific schemes in regulations, with a range of options to ensure that users of the listed schemes do not benefit from retaining the tax in dispute. It will also clamp down on avoidance through reli...