DOTAS.. A clearer understanding
In the advisory community there has been concern in relation to HMRC's new DOTAS (disclosure of tax avoidance schemes) proposals.
HMRC's intention is to extend the current arrangements (a) designed to avoid or reduce an initial charge to inheritance tax and (b) arrangements intended to reduce IHT upon death.
The intention of HMRC with DOTAS appears to be to define tax avoidance as occasions when it is clear that attempts have been made to defeat legislation in this area.
Marie-Louise Hamilton comments:
"My hope is that, for the benefit of both advisers and their clients, HMRC will provide a clearer understanding of what the government have in mind. Otherwise, they may be inundated with DOTAS declarations for every possible arrangement that has any benefitial IHT planning outcome!"
"One positive outcome is that DOTAS applications will not be required for arrangements that are merely using the reliefs given in the legislation, for example, Business Property Relief."
If you would like to discuss any aspect of this article further, please contact Marie-Louise Hamilton or any member of the Wrigleys' Private Client team on 0113 244 6100.
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The information in this article is necessarily of a general nature. Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors