HMRC have launched consultation on a principles-based approach to avoidance involving financial products. Two areas of avoidance are being targeted, namely disguised interest, and transfers of income streams. The intention behind this approach is to produce legislation embodying, for each of the above areas, a principle of United Kingdom taxation. This will be coupled with a statement on the operation of the legislation, by reference to that principle. HMRC hope that in addition to reducing avoidance, this approach would introduce certainty, as well as reduce complexity and the costs of compliance. HMRC also suggest that such an approach might even...