Offshore structures will be subject to even further scrutiny following another HMRC consultation.
This time, the consultation is focusing on Profit Fragmentation and the use of structures overseas to hold profits; typically in low taxation territories to avoid tax.
Gary Ashford, partner and Chartered Tax Adviser, said “We have already seen significant changes introduced for large companies, for example the Diverted Profits Tax, alongside the OECD BEPs initiative.
“We have also seen significant changes to the way those in the investment management industry are taxed to ensure investment management fees are taxed in the UK.
“The current consultation looks at how HMRC can broaden its net to capture income placed overseas by UK individuals.
“Given the huge amount of changes in the last few years and increase in sanctions where things go wrong, it is very important to take advice on proposed or past structures. As more and more international information is starting to be exchanged, offshore structures are under greater scrutiny than at any time previously.”
If you would like further information on the consultation, you can read it in full here.