Anti-Avoidance Group
Welcome to HMRC's Anti Avoidance Group (AAG) pages.
Tax avoidance remains a substantial threat to the Exchequer and the AAG has been established to co-ordinate HMRC's anti-avoidance activity in a systematic manner.
News
Finance Act 2008 received Royal Assent on 21 July 2008. Section 116 and Schedule 38 amends Part 7 of Finance Act 2004 to improve the system of identifying users of disclosed tax avoidance schemes.
This measure closes gaps that inhibited the transmission of the Scheme Reference Number (SRN) from the promoter back to HMRC by:
- clarifying the time when a promoter is required to pass an SRN onto his client
- introducing new obligations for co-promoters and intermediaries
The Proposal Stage Impact Assessment (PDF 93K) outlines what these changes mean.
An Appointed Day (Appointed Day) Order 2008, SI 2008/1935 was made on 22 July 2008 to bring these amendments into force on 1 November 2008.
The Tax Avoidance (Information) (Amendment) Regulations SI 2008/1947 implementing this measure were made and laid before the House of Commons on 22 July and will also come into effect on 1 November 2008. These regulations prescribe information and time limits and exempt employment schemes from duties under new section 312A.
The NICs regulations are also being updated to apply information powers introduced in Finance Act 2007 and the 2008 changes. These will be made and laid before both Houses in October and come into force on 1 November 2008.
Updated guidance to encompass these changes will be published over the coming weeks.
Simplifying anti-avoidance legislation
HMRC published on 17 July 2008 an update report on the Anti-Avoidance Simplification Review. The objective of the review is to consider how anti-avoidance legislation can best meet the twin aims of simplicity and revenue protection. This update follows on from the earlier progress report published at Budget 08, and focuses on three areas of the review: Transactions in Securities, certain rules relating to shares acquired by employees and greater alignment of the various unallowable purposes' tests. It also offers the opportunity to provide feedback.
This update report (PDF 54K) is also available in PDF format. To view a PDF document you must have a PDF reader installed on your computer. Adobe Reader is provided for download.
VAT: Partial Exemption - launch of consultation
A consultation has been launched on ideas to simplify the VAT partial exemption rules to reduce compliance costs for businesses. The consultation invites comments and suggestions on the three partial exemption areas identified as simplification priorities by businesses and on possibly combining partial exemption and business/non-business calculations. Businesses and representative bodies are invited to respond to the consultation document. Business Brief 30/08 - provides further background information (19 June 2008).
In November 2007 AAG published a consultation document 'The Tax Avoidance Disclosure Regime: Improving the Scheme Reference Number System'. Following a very constructive consultation period we have now published a response document summarising the main comments received and how they have been followed up in Finance Bill 2008. An updated Impact Assessment has also been published alongside this document (09 June 2008).
