Managing director of the Professional Contractors Group (PCG) John Brazier said: “It would be a terrible irony if Mr Darling was only willing to listen to the very wealthy at the expense of hard working UK families. PCG, leading tax experts and a range of other representative bodies have expressed their dismay at the ill thought out proposals which will place an enormous burden of red tape on small family business.”
Under the so called ‘Income Shifting’ proposals, partners in small businesses will have to account for every single contribution they make to the business.
Although Mr Darling has been criticised for caving in over the proposed non-dom legislation, PCG believes there is a glimmer of hope for the hundreds of thousands of small businesses who would be hit by the Family Business Tax.
Mr Brazier added: “Tax experts agree this is a totally ill conceived and unworkable idea. Hard working ordinary people will be forced to jump through yet more hoops and the burden on small businesses simply to justify their very existence to the tax man will be huge.
“Last month the Chancellor changed plans for a flat rate capital gains tax. Now he’s prepared to listen to critics of the non-dom tax so we must assume that Mr Darling will give the same credence to critics of the Family Business Tax.”
For more information about the income shifting proposals and the range of objections to them, see Shout99's resource on Section660 and income shifting.
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Susie Hughes © Shout99 2008