Re: Politcally created issue
>Now, the coalition has implemented legislation that says anything implemented with the sole intention of avoiding tax (note the word avoid), actually becomes tax evasion ...
Not sure if this really has changed things that much. For decades many financial investment products have been sold with a caveat concerning HMRC approval. Remember the infamous scheme Jimmy Carr, Gary Barlow et al used, was initially approved by HMRC, but had it's approval retrospectively removed due to the way it was actually operating. Interestingly, this is something (ie. HMRC withdrawing their approval) that can also happen to Pensions, ISA's, Endowment's and other mainstream tax avoidance products that HMRC approve - I know having had several investments do exactly this over the decades.
Also the new law doesn't alter the legality of the infamous scheme referred to, because the papers defining the scheme satisfy HMRC's guidance. HMRC will continue to give such schemes provisional approval and watch to confirm that the scheme actually does what it says it will do, in this case invest in film production and generate returns based on this activity. Hence it can be some years before you know whether that high-growth ISA/EIS/Pension etc. investment you made did actually satisfy HMRC or not.
What the law does do is permit HMRC to more easily reject arrangements and schemes that, whilst using legal constructs, are obviously only intended to avoid UK tax.