Fleet News

Tax clampdown fears for in-house leasing schemes

GOVERNMENT moves to clamp down on tax avoidance could sound the death knell for in-house leasing schemes and other complex forms of tax-planning. Experts from accountant Deloitte & Touche warned companies to prepare themselves for blanket legislation after Chancellor Gordon Brown made the new Government's intentions clear in his Pre-Budget Statement.

Speaking at the Fleet News Roadshow in Donington, tax partner Alison Chapman said even the simplest forms of avoidance would be hit if the Government passed general legislation designed to close all loopholes. She said the Government's other option would be to target specific areas of avoidance and make them illegal, but it was difficult to predict which areas would come in for closest scrutiny.

'There are a number of schemes out there which are clearly avoidance schemes and if the Government introduces general anti-avoidance legislation, these will be hit,' said Chapman. 'If the Government opts for specific anti-avoidance measures, these schemes will be more difficult to hit.'

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