The government has announced that legislation, effective from 6 June 2006, will be introduced at the Report Stage (which is normally early in July) of the Finance Bill 2006 to prevent avoidance of tax by the factoring of taxable receipts or the creation of tax-deductible expenses in return for a lump sum that is not taxed as income. Draft legislation was published on 6 June 2006 to enable interested parties to comment, particularly on the scope of the provisions. The draft legislation deals with arrangements which, in economic terms and for accounting purposes, are secured loans, but where the legal...