HM Customs and Excise 8
                                                  17 March 1998
_____________________________________________________________
VAT: CRACKDOWN CONTINUES ON ARTIFICIAL AVOIDANCE

Following his commitment in the Pre-Budget Report to tackle
tax avoidance, the  Chancellor today announced a package of
VAT changes to protect over 1.5 billion  pounds of VAT
revenue per year from artificial avoidance schemes. 

The package comprises measures to combat schemes used by:

    traders exploiting the interaction between the relief
available for the transfer of a business as a going concern
and other reliefs;
    commercial sports clubs who avoid charging VAT to users
of their facilities by misusing the exemption for non-profit
making organisations;
    UK non-business organisations taking advantage of the
relief available when businesses outside the EC let goods on
hire to UK customers who are not themselves businesses.

Customs will also be consulting business on general
anti-avoidance rules covering  defined areas of VAT, in
parallel with the Inland Revenue's consultation on a General 
Anti-Avoidance Rule for direct taxes.  Illustrative VAT
clauses will be published in the  summer.  


NOTES

Details for businesses are in Budget Notices 2/98, 8/98,
54/98 and 66/98. 

Press enquiries only to HM Customs and Excise, Public
Relations Office, New  King's Beam House, 22 Upper Ground,
London, SE1 9PJ.  
Telephone:  0171 865 5468/5471

Others should contact their local VAT Business Advice Centre,
listed under  Customs and Excise in the telephone book.

Customs and Excise Internet address: 
http://www.open.gov.uk/customs/c&ehome.htm

This news release can also be found at :
http://www.hm-treasury.gov.uk.  Other Treasury material can
also be found at this address.