Tuesday, February 22, 2011
NO. The Revenue do NOT approve Disclosed tax schemes
I was at a business networking event last week and found myself talking to 'Bill' from 'XYZ Capital management'. He will have seen my name badge referenced the 'Tax Advice Network'.
This is pretty much how the conversation went:
Me: And what do you do at XYZ capital management?
Bill: We help wealthy people manage their capital.
Me: Are you financial advisers?
Bill: More than that. We can help people reduce the tax they pay down to zero, using approved tax schemes.
Me: Approved by whom?
Bill: HMRC. We only use approved schemes that have been fully disclosed under DOTAS
Me: Sorry. HMRC never approve tax schemes. The Spotlights page of their website was recently updated to make this clear as they are fed up of promoters telling people that a disclosed scheme has been approved - when it hasn't.
Bill: Well, once they've been disclosed HMRC don't seem to have a problem with them.
Me: Sorry. I know a bit about all this. But I think it's best I keep off my soapbox and simply say I have no interest in such schemes.
I resisted the temptation to give 'Bill' a full lecture. He asked for my card - which I gave him and suggested that if he wanted to know more about HMRC's Spotlights page he could check out the references to it on this blog. I said I had also addressed the way that tax schemes are, in my view, frequently mis-sold.
If you're reading this 'Bill', do let me know what you think.