The government has introduced new legislation to prevent the use of two aggressive tax avoidance schemes used by Barclays.
Her Majesty's Revenue and Customs (HMRC) was informed of the two schemes by Barclays. The bank will now have to pay £500m in tax it had tried to avoid. One of the schemes worked by ensuring the commercial profit the bank gained through buying back its own debt was not subject to corporation tax. The government has now introduced legislation to prevent the scheme being used in future. The legislation will also allow HMRC to recover tax on the scheme's use in the past. The second scheme involves authorised investment funds (AIFs). In this scheme, the perpetrator converts non-ta...
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