A recent judgment (Case Z20) has determined that an arrangement where a taxpayer purchased a residential property in a Loss Attributing Qualifying Company (LAQC) and subsequently rented that property to themselves, while claiming the tax losses from the LAQC, amounted to tax avoidance.

As a result of the recent payroll giving legislation being passed, employers may now offer payroll giving schemes to their employees. The employee will receive an instant tax credit each pay date based on the amount donated rather than having to file a donation rebate claim form at year end. This is effectively achieved by way of a reduction in the amount of PAYE that is required to be made from the employees salary or wages.