RegulationMar 21 2012

Government consulting on tax anti-avoidance rule

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ByMichael Trudeau

The government will introduce a general anti-avoidance rule to the UK’s tax system in next year’s Finance Bill, chancellor George Osborne has announced.

In his Budget speech today (21 March), Mr Osborne said such a rule would improve the government’s ability to confron the problem of tax avoidance without damaging the competitiveness of the UK as a place to do business.

He said: “Taken together, the anti-avoidance measures in this year’s Finance Bill will increase tax revenue over the next five years by around £1bn, and protect a further £10bn that could have been lost.”

He added that this week the government has signed an agreement with Switzerland to stop UK residents from evading tax.

“I regard tax evasion, and indeed aggressive tax avoidance, as morally repugnant,” added Mr Osborne.