1. PRIVATE CLIENTS
1.1. Attribution of gains and the transfer of assets
abroad
The anticipated consultation document has now been published
regarding on proposals for the reform of two anti-avoidance tax law
provisions: (1) gains attributed to members of non-resident closely
controlled companies, and (2) the transfer of assets abroad.
These two pieces of anti-avoidance legislation are designed to
prevent assets being transferred or held overseas to avoid UK tax.
On 16 February 2011 the EU Commission issued infraction notices in
the form of Reasoned Opinions as, in its view, these measures go
beyond "what is reasonably necessary in order to prevent abuse
or tax avoidance and any other requirements in the public
interest". It took the view that these current UK tax rules
are "disproportionate" and therefore incompatible with
the treaty freedoms of the single market in relation to these two
pieces of tax legislation.
