Written question asked by David Drew (Labour) on Tuesday, 22 March 2005, in the House of Commons. It was due for an answer on Monday, 4 April 2005. It was answered by Baroness Primarolo (Labour) on Monday, 4 April 2005 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what measures he is planning to put in place to enhance anti-avoidance measures for tax purposes at an international level.

Answer: Mr. Drew: To ask the Chancellor of the Exchequer what measures he is planning to put in place to enhance anti-avoidance measures for tax purposes at an international level. [224032] Dawn Primarolo: The Chancellor announced a package of anti avoidance measures during his Budget speech which tackle the avoidance of UK tax by international tax planning. Measures were announced to prevent the avoidance of capital gains tax by individuals and trusts. Action has also been taken to prevent individuals and companies manipulating the rules that give relief for overseas tax, and to strengthen the existing controlled foreign company rules. Anti avoidance measures were also announced by the Chancellor which affect both UK and international avoidance, including action against avoidance through arbitrage, persons who act together and collectively control a business and avoidance using shares and derivatives in place of loans. The Government are committed to creating a fairer tax system. Artificial and contrived tax avoidance schemes undermine fairness, at the expense of those who do not indulge in them.

Secondary information