Following on from the March budget announcements that the Government intends to target specific areas deemed to be ‘high risk’ for tax avoidance, 2 new consultations were launched in June on the first two areas identified as such. Both consultations run until 30 September 2011.

Relief for income tax losses

This consultation covers reliefs for losses incurred in a trade, profession or vocation, a property business or in employment that are relievable against general income or capital gains either of the same tax year or another tax year.

The stated aim of the consultation is to explore ways of ensuring that genuine business losses and employment losses are relieved while effectively deterring taxpayers from entering into tax avoidance arrangements intended to exploit these loss reliefs. The consultation document can be accessed at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent& propertyType=document&columns=1&id=HMCE_PROD1_031409

The taxation of unauthorized unit trusts

This consultation concerns the tax rules for unauthorised unit trusts and their investors. The aim is to explore ways of simplifying a complex part of the tax code to reduce administrative burdens and at the same time remove avoidance opportunities. The consultation can be accessed at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent& propertyType=document&columns=1&id=HMCE_PROD1_031408