Tax Avoidance Tricks
According to HMRC there are 7 tax avoidance tricks that contractors set up that may well be caught by the Section 660a settlements legislation. HMRC are aware of them.
HMRC List Tax Avoidance Tricks
They are the following:-
- Shares subscribed at par that carry only restricted rights
- Shares given away that carry only restricted rights
- Shares subscribed at par in a company by one person where the income of the company derives mainly from a different person
- A share in a partnership gifted or transferred at below value
- Dividend waivers
- Situations where dividends are paid only on certain classes of share
- Dividends paid to the settlor‘s minor children
These are the main tax avoidance tricks used by contractors.
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