This year's rushed Finance Act contains several retrospective and retroactive elements. Explicit retrospection is always dangerous but damage can also be delivered in more subtle ways — as exemplified by the new pensions rules and the bank payroll tax.
Avoidance
The Finance Act contains several anti-avoidance measures which are backdated to the date of the blocking announcement. For example changes to the sale of lessors take effect from 9 December 2009 when draft legislation was published. The problem is that the Finance Act doesn't mirror this draft legislation. Instead it has been changed so that it 'operates fairly and [so] that the full amount of tax will be collected on the profits of the leasing business following the sale' (Budget Note 14); it therefore contains retrospective elements.
Pensions tax relief
Retrospection in the context of structured avoidance can arguably be justified....
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Home >Articles > FA 2010 comment: Retrospection is always dangerous
FA 2010 comment: Retrospection is always dangerous
Anne Redston on retrospective measures
This year's rushed Finance Act contains several retrospective and retroactive elements. Explicit retrospection is always dangerous but damage can also be delivered in more subtle ways — as exemplified by the new pensions rules and the bank payroll tax.
Avoidance
The Finance Act contains several anti-avoidance measures which are backdated to the date of the blocking announcement. For example changes to the sale of lessors take effect from 9 December 2009 when draft legislation was published. The problem is that the Finance Act doesn't mirror this draft legislation. Instead it has been changed so that it 'operates fairly and [so] that the full amount of tax will be collected on the profits of the leasing business following the sale' (Budget Note 14); it therefore contains retrospective elements.
Pensions tax relief
Retrospection in the context of structured avoidance can arguably be justified....
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
