A legal way to save and invest with limits which minimisereduces the tax you pay versus a way to minimise your tax which is legal.
FTFY
The scheme??.??.??.??used artificial transactions to generate tax relief from a property business that owns agricultural land,’ said the Treasury at the time.
Taken for a ride? The seven-time Olympic medallist has joined a partnership that will save him thousands in income tax
‘Although the land itself and the business owning it will exist, the transactions are not part of any genuine agricultural business. They are generated only to create an artificial loss that can be set off by users??.??.??.??to reduce their tax bill.’
In a Twofold-type scheme, an individual could end up paying no tax at all, by investing around £100,000 yet claiming tax relief on £1?million.
This is achieved as each £100,000 is supplemented by a £900,000 loan taken out by the partnership. That money, after being paid to the farmer, is swiftly repaid to the bank.
The accountants find a way to artificially ‘write down’ the investment to become a loss on paper, even though there was no cash loss.
The original £100,000 goes to the advisers and banks in fees, but the partnership members claim they have made a loss of £1?million, which they set against their income
Its just not the same though it is legal