Year after year, some wealthy individuals have used legitimate reliefs to pay little or no tax, according to the Treasury.HERE THEY ARE
Chancellor George Osborne has claimed that he was "shocked" by the extent to which these high-income individuals have used the system. Some accountants and commentators have questioned whether he should be so surprised, as many of these schemes have been around for years. Remember, tax avoidance - unlike tax evasion - is perfectly legal, so it is up to the government to change the rules to make these people pay more in tax. So, what are the most common forms of tax avoidance? The BBC News website asked two experts to pick out some of the most common avoidance schemes: Ronnie Ludwig of Saffery Champness Accountants and John Whiting of the Chartered Institute of Taxation, who also advises the government on tax simplification. Tax reliefs Wealthy individuals have a lot of disposable income - money that is not needed to heat the house, feed the children, or pay the council tax bill. This income can be invested in things that lead to a reduction in the amount of tax they have to...