Tackling disguised remuneration – tax avoidance schemes
19 September 2017
The second Finance Bill of 2017 introduces further changes to tackle disguised remuneration tax avoidance schemes since Spring Budget 2017 including the close companies’ gateway and new information requirements for the loan charge.
A clause introduces a number of new sections to the employment income provided through third parties’ rules in Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). These new sections introduce a new gateway, and consequential double taxation relief provisions, to Part 7A ITEPA 2003.
The clause also introduces changes to the new charge on outstanding loans from disguised remuneration schemes (the loan charge), which is being legislated in Finance Bill 2017. These include the introduction of a requirement for employees in scope of the loan charge to provide additional information to HMRC about the loans they have received, and some further changes due to the introduction of the new gateway in Part 7A ITEPA 2003.
Further details can be found in the draft legislation, explanatory note and technical note.