Online News - Business News - Date: January 2008
Capital Gains Tax Reform
The proposed changes announced in the Pre-Budget Report to the capital gains tax (CGT) system are radical. Taper relief for CGT will be abolished for disposals on or after 6 April 2008. Other changes to the CGT system include introducing a flat rate of CGT of 18% and abolishing indexation, an allowance for inflation.
Advisory Fuel Rates
To reflect the increases in fuel prices, HMRC have issued new advisory fuel rates for company car drivers. These take effect for all journeys undertaken from 1 January 2008 so employers wishing to use the new rates should advise affected employees and update any expense forms as soon as possible.
Proposed Cuts in 'Red Tape'
According to a government report, cuts in ‘red tape’ are saving UK businesses and third sector organisations more than £800 million per year.
Inheritance Tax Nil Rate Band
Chancellor Alistair Darling announced in his Pre-Budget speech a change to the way in which the inheritance tax (IHT) nil rate band of £300,000 can be used for married couples and civil partners.
Capital Allowances
In November’s enews we reported on proposed changes to the capital allowances system and HMRC have now issued a 91 page document including draft legislation.
Employment Bill
A new Employment Bill will, if enacted, impose tougher penalties on employers and dispute resolution procedures will be simplified. The overall effect of the Employment Bill is to strengthen and clarify key aspects of employment law. It was introduced and had its first reading on 6 December 2007 with the aim of receiving Royal Assent by summer 2008.
Consultation On Residence And Domicile
In the Pre-Budget Report the government announced a package of reforms affecting the personal tax rules on residence and domicile. The government has now published a consultation document which contains further detail on the proposed changes.
Income Shifting Consultation
You may well remember that the Arctic Systems case involved a husband and wife who owned a company 50/50 and, broadly, took the profits out by way of dividends, again 50/50. HMRC attempted to tax the dividends solely on the husband, as he was performing most of the work which generated the profits of the company.
For further information, please contact us on +44 113 389 6200 or email enquiries@kirknewsholme.co.uk
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