Retrospective taxatio

 Anti-avoidance victory for HMRC

A tribunal victory by HMRC means the Revenue can apply anti-avoidance laws retrospectively, with property developers and IT contract workers facing tax bills of more than £100,000 as a result. More than 2,000 people are liable for tax demands totalling £200m, after using schemes that were legal in the 2000s – but which have now been banned - to avoid paying income tax. British workers had previously been able to legally set up an offshore partnership in the Isle of Man in order to reduce their rate of income tax to just 5%, but the Government closed the loophole in its "double-tax" agreement with the dependency in the 2008 Finance Act. Last month a judge ruled in tribunal documents published this week that the Revenue could retrospectively enforce the legislation to force workers to pay backdated taxes say Harris & co chartered accountants Northampton