TAX NEWS - June 2010

UK Govt sets out plans to clamp down on tax avoidance

The new coalition government has set out its plans to clamp down on tax avoidance in the UK.

In a statement released yesterday (June 22nd) HM Treasury said that it is "committed to making every effort to tackle tax avoidance".

"The government will take a more strategic approach to the risk of avoidance to prevent increasing complexity and reduce the need for frequent legislative change," the department said.

"In this context, the government is tackling long-standing avoidance risks in a way that makes it clear what result the legislation intends to achieve. The government will continue to shut down avoidance schemes as they emerge."

One of the plans put forward by the government is the creation of a General Anti-Avoidance Rule.

HM Treasury said it will discuss if a general rule should form a part of its "strengthened defences".

Further plans to clamp down on tax avoidance on stamp duty, inheritance tax and life insurance policies were also announced by UK government.