Some more high profile tax avoidance cases (including “Icebreaker 2”) have been won by HMRC. For many years aggressive tax avoidance split opinion in of tax advisers. Some, including myself, viewed such schemes highly risky and at times frankly ludicrous; others saw “avoid tax at all costs” as a necessity of being an accountant.
Those that indulged in many “schemes” aimed solely at avoiding tax are now faced with huge tax bills and penalty payments. Rightly so in many cases.
Our message and ethos at Green Accountancy relating to tax avoidance is clear and consistent. Using tax relief rules as intended is sensible tax planning. But using tax relief rules via loopholes is asking for trouble.
For example, Theatre Tax Relief should absolutely be claimed by production companies who it is intended to help. It should not be used by as a tax avoidance plan for any high worth individual.
Pay the correct minimum tax, making use of the rules as intended, and the system works fine.