Expert calls for clarity over tax reduction schemes. By Dan Martin
HMRC's refusal to indicate whether reported tax reduction schemes are legitimate is leaving taxpayers with the prospect of paying over two years interest on unpaid tax should the Revenue decide to challenge schemes, a tax expert has warned.
The requirement for taxpayers and their advisers to disclose tax reduction schemes was first introduced as part of the 2004 budget. Since then, the rules have been expanded to include schemes that manage inheritance tax, income tax, capital gains tax and corporation tax.