Coalition gets tough on tax avoidance of the wealthy

Nick Clegg backed away from the Liberal Democrats' plans for a mansion tax yesterday as he joined David Cameron in promising a government crackdown on tax avoidance.

The Deputy Prime Minister is pressing for more taxes on the very rich to allay public fears over the Coalition's spending cuts. But his caution over Liberal Democrat proposals for a tax on homes worth more than £2m reflects opposition to the move from George Osborne. Instead, the Chancellor is expected to use his March Budget to close tax loopholes exploited by wealthy individuals and companies – including people who avoid stamp duty on their homes. He is likely to announce Britain's first "general anti-avoidance rule".

Liberal Democrat sources denied Mr Clegg had abandoned his support for a mansion tax but admitted he could not commit the Coalition to introducing one.

They said the Deputy Prime Minister would insist that Mr Osborne imposes new taxes on the rich if he scraps the 50p rate of tax on earnings above £150,000 a year. However, abolishing the top rate now looks increasingly unlikely as it would fuel Labour claims that the Tories are "the party of the rich".

Mr Clegg told BBC Radio 4: "I think there are millions of people... who pay their taxes, who work hard, who aspire to do the right things for themselves and their families, who are quite rightly angered there is a wealthy elite of large businesses who can pay an army of tax accountants to get out of paying their fair share of tax. They basically see paying tax as an optional extra, they pick and choose the taxes you pay. There should be a general rule that you can't play the system, you can't abuse the system."

Yesterday Mr Cameron pledged a "tougher approach" towards large companies employing "fancy corporate lawyers" to keep down their tax bills.

David Gauke, the Treasury minister, said: "People buying high value properties must pay their fair share. We're looking at this area to see what can be done."One dodge is for properties to be placed in an offshore company, allowing owners to escape stamp duty because the company rather than the house can be sold.

Start your day with The Independent, sign up for daily news emails
News
people

Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando

Sport
Kim Sears is reported to have directed abuse at Berdych
tennis
News
news

Rap music mogul accused of running two men over in his truck

News
Gywneth Paltrow proposed that women seek out a special herbal steam-treatment service
news
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
News
Toronto tops the charts across a range of indexes
news

World cities ranked in terms of safety, food security and 'liveability'

Voices
A mother and her child
voices
Arts and Entertainment
tv

First full-length look is finally here

Voices
The veterans Mark Hayward, Hugh Thompson and Sean Staines (back) with Grayson Perry (front left) and Evgeny Lebedev
charity appealMaverick artist Grayson Perry backs our campaign
News
Tax now accounts for ‘nearly 80%’ of the price of a bottle of whisky
news

Arts and Entertainment
Peppa Pig wearing her golden boots
film

"Oink! Oink! Hee hee hee!" First interview with the big-screen star

Life and Style
tech

Biohacking group hopes technology will lead people to think about even more dystopian uses

Arts and Entertainment
film
Life and Style
life
Arts and Entertainment
Film director Martin Scorsese
film
News
news

The party's potential nominations read like a high school race for student body president

2015 General Election
May2015

Poll of Polls

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Regional Gas Installation Manager - South East England

£36000 per annum: Recruitment Genius: A Regional Gas Installation Manager is r...

Recruitment Genius: Domestic Gas Service and Breakdown Engineer - South East

£29000 - £31000 per annum: Recruitment Genius: A Domestic Gas Service and Brea...

Tradewind Recruitment: Year 3 Teacher

Negotiable: Tradewind Recruitment: My client is a two form entry primary schoo...

Recruitment Genius: Engineering Manager - Alconbury

Negotiable: Recruitment Genius: An opportunity has arisen for an Engineering M...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee