Tax News
Revenue issues crackdown on post-cessation trade relief
HM Revenue & Customs (HMRC) has introduced new legislation to block a scheme involving post-cessation trade relief, with immediate effect.
Post-cessation trade relief allows individuals to claim a deduction in their income tax calculations for certain costs and bad debts after a trade, profession or vocation has ceased.
HMRC has highlighted an avoidance scheme which involves individuals artificially exploiting the relief in order to claim a tax deduction.
David Gauke, Exchequer Secretary to the Treasury, announced that the new legislation would prevent the relief from being available where a main purpose of the arrangements is to obtain a reduction in tax.
The legislation supporting the change will be included in the 2012 Finance Bill.
For monthly tax and accountancy tips and news sign up for our Tax Newsletter.
Subscribe in a reader