Tax avoidance, care home fees, consumer spending and energy

Banks and accountancy firms that help people to avoid tax face huge fines under proposals set out by the Treasury.

A fine of up to 100 per cent of the tax that was avoided – including via off-shore havens – has been suggested in the new rules, published for consultation. Currently those who advise on tax face little risk, while their clients face penalties only if they lose in court.

The rules would ‘root out’ tax avoidance at source, the Treasury said. The rules in the consultation document also make it simpler to enforce penalties when avoidance schemes are defeated. ‘These tough new sanctions will make would-be enablers think twice and in turn reduce the number of schemes on the market,’ said the Financial Secretary to the Treasury, Jane Ellison. Care home fees The Guardian reports that the financial pressure on older people and their families when trying to pay for social care is growing, with the average cost of a room in a care home now more than £30,000 a year.