On 27 September 2012 it was reported that the British government has used new Targeted Anti-Avoidance Rules aimed at trade and property businesses to close down a scheme which it says was being marketed as a way to reduce corporation tax by exploiting rules that allow certain types of expenditure to be deducted automatically from profits.
New legislative amendments due to be included in the Finance Bill 2013, but effective from December 21, 2012, reverse the order of priority in determining whether a deduction is allowable, so that rules giving tax relief no longer have priority over rules prohibiting deductions. The Treasury has declined to name the tax avoidance scheme or give further information about it.
