Promoters welsh on IR tax deal

UK bankers depressed by the size of their last bonus should stop reading now. The news gets worse.

In May, chancellor Gordon Brown and the Inland Revenue stepped up their two-pronged attack on City firms whose workers dodge paying tax at the higher rate of 40% on their bonuses.

After closing tax law loopholes last year, the Inland Revenue has now published its Tax Avoidance Schemes (Information) Regulations 2004, which come into force on August 1.

The regulations require promoters of tax-avoidance schemes to give the Inland Revenue a summary of the scheme within five days of them becoming aware that a client is using it.