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UK Autumn Budget 2018: Tax Avoidance

Business Tax - 29 Oct 2018

Tax Avoidance

The Government have announced steps that they are taking to continue to target avoidance. We await any further detailed information but have set out below a few of the measures that impact the private client world:

  • Directors and other persons involved in tax avoidance, evasion or phoenixism (closing down and setting up new companies) will be jointly and severally liable for company tax liabilities, where there is a risk that the company may deliberately enter insolvency.
  • With immediate effect shareholders wanting to claim Entrepreneurs' Relief must also be entitled to at least 5% of the distributable profits and net assets of a company to claim the relief as well as meeting the current shareholding and voting right requirements.
  • The government are taking the disclosable arrangements a step further by announcing the introduction of international disclosure rules for offshore structures where tax could be avoided or the structure misused to evade tax. The definitions and whom this will affect have not yet been given but this could have a significant impact on private clients.
  • The government will publish an updated offshore tax compliance strategy which will build on the previous strategy published in 2014.

Read the full report
In a Budget to signal the coming of the end of austerity Philip Hammond announced measures to increase public spending in particular to provide a boost to the NHS, Highway’s Agency and Counter Terrorism policing. 

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