2009 Pre-Budget Report Summary

Pre-Budget Introduction

Miscellaneous

Spotlights on avoidance

HMRC's internet publication, 'Spotlights', which highlights avoidance schemes, will be expanded to include more general 'buyer beware' messages. These will provide taxpayers with an indication of the type of arrangements to avoid. It will continue to highlight specific avoidance schemes that in HMRC's view are ineffective or have unintended adverse consequences in order to deter taxpayers from buying into high risk avoidance.

Equitable Liability Extra Statutory Concession

A concession has existed for taxpayers in receipt of a determination of income or corporation tax who are out of time to file their tax return and who can demonstrate that the sums charged are excessive.

By concession HMRC only collected the sum that would have been due for the period had the taxpayer filed the return on time. Legislation will be introduced to permit HMRC to continue to apply this treatment provided certain conditions are met.

Comment HMRC's original intention was to remove this concession but not introduce relieving legislation. After pressure from professional bodies, HMRC have changed their mind.