Tax avoidance loopholes upset the Chancellor

12 April 2012 Categories: News

Tax avoidance loopholes upset the Chancellor

When officers from HM Revenue & Customs showed Chancellor George Osborne a stack of 20 anonymous tax returns that had legally used tax avoidance loopholes to save a collective £145million in income tax payments he was ‘upset’ and ‘shocked’ to say the least. Plus, it seems that some of the avoidance loopholes used by the wealthiest people in Britain are available to landlords, and they could mean thousands more tax returns being filed in the future that generate tax bills of virtually nothing.

Tax avoidance is legally sound, but reports have hinted that Chancellor George Osborne is aiming to look into the existing loopholes with a view to closing them, meaning that property investors will be required to pay their full quota of income tax. For the time being though, the loopholes do exist and are there to be taken advantage of.

Commenting on the discovery of the legal loopholes for private landlords, Chancellor Osborne said; “I was shocked to see that some of the wealthiest people in the country have organised their tax affairs, and to be fair it’s within the tax laws, so that they were regularly paying virtually no income tax. And I don’t think that’s right. The general principle is that people should pay income tax and that includes people with the highest incomes”
As to whether the existing loopholes will be closed before the next tax return deadline remains to be seen.