Budget 2018 Anti-Avoidance

The new assessment period for ‘careless’ offshore tax non-compliance will come into force from April 2019. Following the Requirement to Correct deadline passing on the 30th September, any non-compliance in offshore matters now face hefty penalties over 12 years. The IR35 rules are also being extended out to private sector and there will be corporation taxes to pay for overseas companies with UK property businesses.

1)      Changes to IR35 will be implemented with the intermediaries’ rules being extended to the private sector as well as the public sector form April 2020. The engaging business, agency or third party which will need to determine whether a contract falls within the IR35 rules, and not the Personal Service Company.

2)      The government also intends to make directors liable for business taxes owed, where there is a risk of a company deliberately entering insolvency to avoid or evade tax.

3)      The assessment period for ‘careless’ offshore tax non-compliance for income tax, capital gains tax and inheritance tax will increase to 12 years from April 2019. Deliberate behaviour case will still be assessed for a 20-year period.

4)      Overseas companies with a UK property business will chargeable to UK corporation tax from April 2020.