The Finance Bill 2014 will contain provisions which will have effect from 30 January 2014 in relation to arrangements entered into on or after that date.
The provisions will amend the targeted anti-avoidance rule (TAAR) in TCGA 1992 ss 184G–184I on the use of capital losses to shelter income profits, to make it clear that arrangements involving derivative contracts and other financial products are within the scope of the TAAR. The new legislation introduces references to ‘receipt or other amount’ and ‘income deduction’ instead of ‘disposal’ and ‘expenditure’.
The exchequer secretary to the Treasury, David Gauke, said: ‘The amendment will put it beyond doubt that the rule applies to all arrangements where capital losses are misused in an attempt to reduce income profits. This confirms the purpose of the rule rather than extend its intended scope.’
The Finance Bill 2014 will contain provisions which will have effect from 30 January 2014 in relation to arrangements entered into on or after that date.
The provisions will amend the targeted anti-avoidance rule (TAAR) in TCGA 1992 ss 184G–184I on the use of capital losses to shelter income profits, to make it clear that arrangements involving derivative contracts and other financial products are within the scope of the TAAR. The new legislation introduces references to ‘receipt or other amount’ and ‘income deduction’ instead of ‘disposal’ and ‘expenditure’.
The exchequer secretary to the Treasury, David Gauke, said: ‘The amendment will put it beyond doubt that the rule applies to all arrangements where capital losses are misused in an attempt to reduce income profits. This confirms the purpose of the rule rather than extend its intended scope.’
