HMRC's history of ensuring its anti-avoidance provisions comply with the fundamental freedoms of EU law is not a happy one. On 30 July, it released its consultation document into reforming the rules around the transfer of assets abroad (in ITA 2007 ss 714–751) and the attribution of gains in TCGA 1992 s 13. It appears to be up to its old tricks again.
The reform document follows the EU Commission's commencement of infraction proceedings into the two regimes which took the form of a reasoned opinion issued on 16 February 2011.
In essence the concept of taxing a UK person either where they are a participator in a non-UK closely held company which realises a gain or where income is payable to a person abroad as a result...
