Unauthorised unit trusts face tax clampdown

Unauthorised unit trusts have been targeted by the Treasury in its latest tax avoidance clampdown.

HMRC said in its Tackling Tax Avoidance document, released alongside today's Budget, it would be reviewing the current tax rules to make sure the schemes were not being used for the wrong reasons.

It said: "The legislation governing unauthorised unit trusts is complex and such trusts are used by companies to create tax advantages.

"The review of the legislation will aim to ensure that commercial use of these structures is not disadvantaged, whilst minimising the scope to use them for avoidance."

HM Treasury says the review will also assess the "mechanics" of current legislation which imposes "burdens on both commercial users of unauthorised unit trusts and HMRC".