Anti-avoidance measures

Holiday pay national insurance contribution exemption

The NIC exemption for holiday pay that is paid through third parties will be removed for all sectors outside the construction industry with effect from 30 October 2007. The exemption will remain for the construction industry for another five years to give it time to adjust.

Other anti-avoidance provisions

Legislation will be introduced to counter a range of different tax avoidance schemes, including individuals who pay all the interest in advance on certain business loans to accelerate their tax relief, the sale and leaseback of plant and machinery, and companies that in effect convert interest into non-taxable income.

The Government will also be consulting on principles-based responses to tax avoidance involving income stripping and disguised interest with the aim of improving clarity and certainty.

Contents

	Introduction

	Inheritance tax

	Capital gains tax

	Residence and domicile

	Income tax

	Business taxation

	VAT

	Stamp duties

	Pensions

	Anti-avoidance

This guide is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking action on the basis of the contents of this publication. The guide represents our understanding of the law and HM Revenue & Customs practice as at October 2007, which are subject to change. These proposals may be changed in the Spring 2008 Budget and subsequent legislation.