UK  

Treasury claims Finance Act will help save £1.2bn

Treasury claims Finance Act will help save £1.2bn

The Finance Act, which includes new measures to tackle tax fraud, has become law today (15 March), in a move that will save taxpayers £1.2bn, the government had claimed.

New measures included within the Act include action to tackle VAT fraud and close loopholes on offshore tax avoidance.

Mel Stride, financial secretary to HM Treasury and Paymaster General, said the changes show the government’s determination to ensure the tax system remains fair for the honest majority of people and businesses who pay the taxes they owe.

The new legislation includes rules stopping people from using complicated structures to avoid reporting how much they really earn as well as closing loopholes in anti-avoidance rules that allow people to avoid paying UK tax on the funds they withdraw from offshore trusts.

Online marketplaces such as Ebay and Amazon will become more responsible for paying the unpaid VAT of their sellers, and companies will not be able to claim relief for losses on the disposal of shares which do not reflect losses incurred by the wider group.