Tightening of loss relief provisions
The Government recently announced action to counter tax planning that relies on using loss relief.
The new rules will prevent loss relief and capital gains relief from being given for a loss from a trade, profession or vocation where the loss arises from tax avoidance arrangements. The legislation will be included in the Finance Bill 2010 but will be effective from 21 October 2009.
This measure seeks to target those who enter into arrangement for the purpose of obtaining a reduction in tax liability by means of loss relief but should not impact on those who make losses but have not entered into avoidance arrangements.
Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552.
Date: 25th November, 2009
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