In his Budget Speech, the Chancellor spoke about the need to combat tax evasion, avoidance and aggressive tax planning.
He said that HMRC’s capacity will be boosted with three quarters of a billion pounds of investment to go after tax fraud, offshore trusts and the businesses of the hidden economy, tripling the number of wealthy evaders they pursue for prosecution – raising £7.2 billion in extra tax.
He also spoke of change to the law to stop the use of losses which abuse the controlled foreign companies regime and to ensure that investment fund managers pay the full capital gains tax rate on their carried interest.
Efforts will be made to stop companies artificially increasing the value of stock for tax purposes, and the employment allowance will be focussed on employment – companies where the director is the sole employee will no longer be able to claim.
In addition, there will be more stringent rule to deal with disguised employment when working through a personal service company.