Originally Posted by
blackcap
I think you are confusing mitigation (legal) with avoidance there FP... at Uni (a while back admittedly) we were taught that mitigation is legal, avoidance is the "grey" area, and evasion is illegal. Excerpt from stuff article seems to back that up. Your example about the bonus bonds in my book is mitigation which is what every citizen has a duty to do.
"Inland Revenue has clarified how it will distinguish between tax avoidance and legitimate "tax planning", following 18 months of consultation.
Chief tax counsel Martin Smith said Inland Revenue would apply the same principle used by the Supreme Court in the 2008 "Ben Nevis" case which concerned tax avoidance by a forestry venture.
"In short, an arrangement will be deemed to be a tax avoidance arrangement if the use of the Income Tax Act is not what Parliament contemplated, having regard to the commercial and economic reality of the arrangement," he said."