On 21 February 2008, HMRC and HM Treasury held an open day on the proposed principles-based approach to financial products tax avoidance (for background, see Legal update, HMRC publishes revised draft legislation on disguised interest).

While it was clear that HMRC is aware that there remain issues with the proposals, it was equally clear that the Treasury is pressing ahead with the approach and is keen to focus debate on the detail rather than the wider implications. It appears that Treasury officials are making plans to speak to ministers at the end of next week (that is, immediately after the consultation period closes on 28 February 2008).

This suggests that there will not be time to give detailed consideration to responses received towards the end of the consultation period and, if subscribers wish to comment formally on the proposals, they should do so as soon as possible.