Contrived employment liabilities and losses (Spotlight 4)
Published 5 August 2010
© Crown copyright 2010
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Legislation included in the Finance Bill 2009, aimed to close down artificial and aggressive personal tax avoidance schemes.
Such schemes seek to abuse tax reliefs available for employment-related liabilities and losses by way of entering into special employment arrangements. Especially where such liabilities or losses are triggered by deliberate acts or omissions. The details of the arrangements mean the users will not in fact incur any real liabilities or losses.
The legislation is effective from 12 January 2009 and HM Revenue and Customs are working to identify all users of the schemes to collect all tax that users of the scheme intended to avoid. The legislation has no impact on those use the reliefs, who are not attempting to avoid tax.