BN66
Before the introduction of new legislation in the Finance Act of 2008 thousands of contractors used offshore tax schemes. This provided significant tax benefits and was something contractors could setup easily. The new legislation BN66 states that UK residents are taxable on income regardless of where it arrives from.
The objectives of the new legislation are as follows:
- Clarify legislation introduced in 1987 so that its full effect is realised.
- Prevent tax avoidance through the misuse of double taxation treaties.
Changes to the legislation have resulted in crippling back taxes for many contractors. HMRC currently have the power to recover taxes from 1987. This has huge implications for many contractors, especially those who were previously running operations through the Isle of Man. More information on BN66 can be found on the HMRC website.
