'Tough' new measures including action to tackle VAT fraud, close loopholes on offshore tax avoidance and crack down on rogue illegal waste site operators have become law in the UK.
The Finance Act 2018, which includes these measures and has now received Royal Assent, is hoping to raise an additional £1.2 billion from tackling tax avoidance, evasion and non-compliance.
The new legislation will tackle 'tax shortfalls' in the following areas:
- People will not be able to avoid paying UK tax on the funds they withdraw from offshore trusts, as the government closes loopholes in existing anti-avoidance rules
- Highly paid people cannot use complicated structures to avoid reporting how much they really earn
- 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
- Companies will not be able to claim unfair tax relief on their intellectual property
- Rogue operators of illegal landfill sites will be forced to pay tax, preventing them from undercutting honest waste management businesses
- Online marketplaces will become more responsible for paying the unpaid VAT of their sellers
These measures build on the extensive government work to tackle tax avoidance, evasion and other forms of non-compliance. Since 2010, the government has introduced over 100 such measures in this space, protecting over £175 billion in tax.
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