The Chancellor George Osbornes’ full segment on Tax Avoidance:
“Mr Deputy Speaker in this Budget everything we spend will be paid for and this requires the following decisions.
We have already taken steps to curb the size of the very largest pension pots.
But the gross cost of tax relief has continued to rise through this Parliament, up almost £4 billion. That is not sustainable.
So from next year, we will further reduce the Lifetime Allowance from £1.25 million to £1 million.
This will save around £600 million a year.
Fewer than 4% of pension savers currently approaching retirement will be affected.
However, I want to ensure those still building up their pension pots are protected from inflation, so from 2018 we will index the Lifetime Allowance.
We have had representations that we should also restrict the Annual Allowance for pensions and use the money to cut tuition fees.
I have examined this proposal.
It involves penalising moderately-paid, long-serving public servants, including police officers, teachers and nurses, and instead rewarding higher paid graduates.”
Tax Avoidance : Dividends Profit Tax
In 2010, city bankers boasted of paying lower tax rates than their cleaners; the rich routinely avoided stamp duty; and foreigners paid no capital gains tax.
We’ve changed all that – and it was this Prime Minister who put tackling international tax evasion at the top of the agenda at the G8.
We will now legislate for the new Common Reporting Standard we have got agreed around the world.
Our new Diverted Profits Tax is aimed at large multinationals who artificially shift their profits offshore.
I can confirm that we will legislate for it next week and bring it into effect at the start of next month.
I am also today amending corporation tax rules to prevent contrived loss arrangements.
And we’ll no longer allow businesses to take account of foreign branches when reclaiming VAT on overheads – making the system simpler and fairer.
We will close loopholes to make sure Entrepreneurs Relief is only available to those selling genuine stakes in businesses.
We will issue more accelerated payments notices to those who hold out from paying the tax that is owed.
And we will stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence – while we protect those genuinely self-employed.
Taken together, all the new measures against tax avoidance and evasion will raise £3.1 billion over the forecast period.
I can also tell the House that we will conduct a review on the avoidance of inheritance tax through the use of deeds of variation. It will report by the autumn.
We will seek a wide range of views.
Mr Deputy Speaker, my RHF the Chief Secretary will tomorrow publish further details of our comprehensive plans for new criminal offences for tax evasion and new penalties for those professionals who assist them.
Let the message go out: this country’s tolerance for those who will not pay their fair share of taxes has come to an end.”