Turning the spotlight on HMRC’s Spotlights

24 February 2012 |

HMRC’s attitude towards tax planning arrangements is well known by most employers. However, employers may well be less familiar with the “Spotlights” section on HMRC’s website.

Spotlights

Spotlights focuses on tax planning arrangements that HMRC contend do not work. It pays particular attention to planning arrangements that it considers will be widely used and which therefore potentially give rise to a greater loss to the Exchequer.

Spotlights also publishes details of planning arrangements where taxpayers have conceded that the tax they have sought to avoid is due, presumably to discourage others from entering into such arrangements. HMRC may well be prepared to publish details of planning arrangements that are tax effective though to date the Spotlights section does not give any examples.

Spotlights claims that it “has a ‘consumer protection’ role” and that it is there to help taxpayers. It is also HMRC’s vehicle to encourage taxpayers and tax agents to provide them with information about people or companies who may be promoting the type of arrangements that HMRC find unacceptable.

Commentary

While some tax professionals and taxpayers may view the claim of a consumer protection role with some scepticism, there may be more concern about the encouragement to “inform”.

This “Watchdog meets Crimewatch” approach is an unusual step for HMRC but it obviously feels that this is a useful one to take. However, we are doubtful that it will be as successful as HMRC would like.

For further information or to discuss the issues raised, please contact Guy Abbiss or John Mooney on +44 20 3051 5711.

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

Circular 230 disclosure

To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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