Philip Baker QC Field Court Tax Chambers 3 Field Court Grays Inn - PowerPoint PPT Presentation

FIELD COURT TAX CHAMBERS Philip Baker QC Field Court Tax Chambers 3 Field Court Gray’s Inn London WC1R 5EP e-mail: pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  Revenue yield  A separate tax  Rates of tax  Inflation  Jurisdictional limits  Exemptions  Tax avoidance  Positive lessons pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  2011: CGT - £3.6B; CT on CG - £1.9B (0.66% and 0.35% of total tax revenue)  So, c. 1% of total tax revenue  2010-11 – 146,000 individuals, 14,000 trusts pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  CGT: Individuals, personal representatives, trusts  Corporation Tax on Chargeable Gains for companies  Separate legislation (TCGA 1992)  Duplication of provisions  Differences between individuals and companies pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  1965-1988 – 30%  1988-2008 – income tax rates  2008 – 18% rate  Now: 10%; 18%; 28% (IT: 10%, 20% and 45%)  Corporation Tax: 21% pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  No real answer  1982-1998 - inflation indexation  Rebasing to March 1982 values  1998-2008 – taper relief  2008+ lower rates than income tax pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  Residents: worldwide gains  (Non-domiciles – only if remitted)  Non-residents – only if trading in the UK through a branch or agency / PE  Very narrow base for non-residents: large gains not taxed  Plenty of opportunities for avoidance pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  Examples  PPR – per couple; elections; periods of absence  Small chattels  Motor cars  QCBs pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  Huge experience  Various types:  Capital loss schemes  Using exempt assets  Using the jurisdictional limits  Countered by TAARs; possible scope for new GAAR pb@fieldtax.com

FIELD COURT TAX CHAMBERS FIELD COURT TAX CHAMBERS  Experience of particular problems of specific assets: e.g. debts; shares; land  Experience of particular types of taxpayers: couples; partnerships; trusts; offshore trusts and companies  Experience (lots of it) of avoidance and ways to counter it pb@fieldtax.com