Summer 2007 Newsletter Content Reverse Charges Beyond The Grave Director's Two Hats IHT Plan Fails VAT And Cash Amnesty International An Inspector Calls Losing A Bet Caring Doctors TAAR Brush Made To Be Broken Flat VAT Safe Deposit Tax On Gas Working Late Composite Companies Excuses, Excuses

TAAR Brush The Budget introduced a "targeted anti-avoidance rule" which says that artificial schemes to create CGT losses will be blocked. The problem is knowing the difference between "standard tax planning to use the losses you have suffered" and "dodgy tax avoidance" - an accountant and a tax inspector might draw the borderline in different places. At least the Revenue have published some examples of what they think is acceptable and what is not, so we have some idea of where they want to put the line. The problem is that it's a bit of a shock - it brands several routine ideas as unacceptable, including the sale of a lossmaking asset by a husband for it to be bought back shortly afterwards by his wife. Tax advisers think that's OK, as it simply crystallises a loss that the husband has actually made - but the Revenue don't like it. The worst of it is that the new rules applied from 6 December 2006 onwards, but the guidance notes they issued at that time changed before the Budget in March. So people may have already done things thinking they were all right, and now they find that the Revenue are minded to object. If you have capital gains or losses, it's worth discussing the tax treatment well in advance of selling the assets - we'll be happy to advise you, and happier still once the Revenue have stopped changing their guidance.