Banking and Finance Client Update May 2012

 

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The Code of Practice on Taxation for Banks: How we can help


As you may well be aware, over the past 18 months HM Revenue & Customs ("HMRC") has asked UK banks and the UK branches of overseas banks to confirm that they will adopt and act in accordance with the Code of Practice on Taxation for Banks (the "Code"). The Code, a major tool in the Government's anti-tax avoidance armoury, aims not just to ensure that a bank abides with the technical letter of various applicable laws, but also introduces a more spirit and principle-driven approach. The Code shifts a burden on to banks not only to discern but also to implement, as regards any proposed transaction, a practice which ensures that there is no tax result which would be "contrary to the intentions of Parliament".

 

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Contact Us

 

Julian Hickey julian.hickey@twobirds.com
Brett Israel brett.israel@twobirds.com
Adam Singer adam.singer@twobirds.com

 


The content of this update is of general interest and is not intended to apply to specific circumstances. The content should not, therefore, be regarded as constituting legal advice and should not be relied on as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.

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