Following our piece in last week’s tax brief, when we expressed concern that HMRC’s latest single departmental plan promised an attack on all forms of tax planning, we were pleased to receive this assurance from HMRC:
'There is no change to the normal, everyday use of tax reliefs as intended by Parliament. Tax reliefs are in place to encourage certain actions such as building up a pension pot, investing in your business or saving for a rainy day and that is overwhelmingly how they work. But, when reliefs are manipulated in a way the law does not intend, to achieve an unfair tax advantage it is only right that HMRC steps in on behalf of the vast majority of taxpayers who play by the rules.'
It’s good to hear that, so far as HMRC are concerned, it’s very much 'business as usual' for routine tax planning. But the gloves are off when it comes to aggressive or artificial tax avoidance.
For more information please get in touch with George Bull, or your usual RSM contact.