HMRC have released a consultation document entitled “Reform of two anti-avoidance provisions: (i) the attribution of gains to members of closely controlled non-resident companies, and (ii) the transfer of assets abroad.” HMRC have asked for comments on this document by 22 October 2012. The document responds to criticisms made by the European Commission that two key pieces of anti-avoidance legislation – section 13 TCGA 1992 and sections 714-751 ITA 2007 – go beyond what is reasonably necessary in order to prevent abuse or tax avoidance. The EC is of the view that this legislation is “disproportionate” and incompatible with the Treaty freedoms of the single market.

For full details, see: http://customs.hmrc.gov.uk/channelsPortalWebApp/ channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments& propertyType=document&columns=1&id=HMCE_PROD1_032219