Mitigating Tax: Opportunities, Trends, HMRC Litigation and Pre-April Year-End Planning in the New Environment

In the UK, and the financial services industry in particular, radical and unprecedented change is taking place in the way businesses and individuals are taxed. Strings are pulling in different directions – the proposed introduction of a 50% income tax from April 2010 against the backdrop of an 18% capital gains tax rate; the introduction of Bank Payroll Tax, and a continued attack on offshore structures and employee benefit trusts (EBTs). HMRC are also significantly increasing investigative resources and launching a renewed challenge on residency matters. Daniel Lewin (Partner, Tax) and Conrad McDonnell (Barrister, Gray's Inn Tax Chambers), discussed tax opportunities, old and new, to ensure advantageous and safe tax treatment for investment management and financial services groups as well as individuals, including:

• Year end planning prior to the 50% income tax coming into force;
• Capital gains and remuneration planning for fund management and financial services groups;
• Latest HMRC litigation trends, particularly with respect to UK tax residency and emigration matters; and
• Latest EBT trends.