In brief, it appears that, in 2000, Zahawi arranged for his founder shares in YouGov to be allotted for non-monetary consideration to a Gibraltar company, B Ltd, which was held by a family trust. Some years later, B Ltd sold the YouGov shares and then made cash loans to Zahawi and his spouse using the proceeds of the sale. Although the details are not known, such a scenario could trigger certain anti-avoidance regimes, such as the transfer of assets abroad and the settlement regimes.

Although there is nothing illegal about using offshore structures to hold and manage personal wealth, those advising on the tax implications of such arrangements must always be alive to the risk that they can be used for tax avoidance or even tax evasion. Particular care should be taken where the taxpayer is a UK resident, as was the case with Zahawi.

This article will briefly consider some of the obligations placed by Professional Conduct in Relation to Taxation (PCRT)[1] on STEP members when advising clients on offshore arrangements.

PCRT principles and standards

PCRT sets out the principles and standards of behaviour expected of all STEP members who advise on UK tax matters; it consists of five fundamental principles and five standards. This article examines how some of them could apply to Zahawi’s case.