Our website uses cookies to store information on your computer. You may delete and block all cookies from this site, but parts of the site will not work as a result. Find out more about how we use cookies.
(Do not show this message again)
Shout99 - News matters for freelancers
Search Shout99 - News matters for freelancers
(Advanced Search)
   Join Shout99  About Shout99   Sitemap   Contact Shout99 18th Jun 2018
Forgot your password?
Shout99 - Freelancers, FO35, Section 660
New Users Click Here
Shout99 - Freelancers, FO35, Section 660
Shout99 - Freelancers, FO35, Section 660
Front Page
Freelancers' Shop...
Ask an Expert...
Direct Contracts
Press Links
Question Time
The Clubhouse
Conference Hall...
News from Partners


Business Links

Shout99 - Freelancers, FO35, Section 660

Freelancers' Shop

Personal Financial Services
from ContractorFinancials




Income protection

... and more special offers for Shout99 readers in the Freelancers' Shop

Shout99 - Freelancers, FO35, Section 660
Shout99 - Freelancers, FO35, Section 660

News for the
Construction Industry

Hardhatter.com - News for small businesses in the construction industry

Powered by
Powered by Novacaster

New guide on tax developments
by Susie Hughes at 09:24 23/06/06 (News on Business)
The Chancellor's latest campaign in his war on tax avoidance will affect more taxpayers than ever before as the Finance Bill extends the battlefield to include the tax treatment of trusts and a number of so-called 'reforms' to corporation tax including the abolition of the nil rate on the first 10,000 of income.
Accountants PKF has published its latest edition of 'Current tax developments' summarising the main changes to tax legislation and explaining how they will affect both business and personal tax payers.

The main area of change to affect many families is that of trusts which are used by many as a practical device to protect income and assets and when drafting wills. Many new trusts will now be subject to Inheritance Tax (IHT) at a rate of 20 per cent for all lifetime transfers into the trust; an IHT charge will be levied at a rate of six per cent every ten years on the value of the trust above the IHT threshold; and an exit charge may also be payable when the assets leave the trust. These changes mean that many taxpayers should now revisit their wills and any other form of estate planning to review whether current trust arrangements should be changed.

The only encouraging news for investors is the introduction of real estate investment trusts (REITs) which will create tax-transparent vehicles for investment in rental property. Already, four of the largest property companies, Hammerson, Liberty International, Land Securities and British Land have announced that they will convert to REITs when the legislation is brought in next year.

Stealth taxes
Peter Penneycard, National Director of Tax at PKF, said: "This year's Finance Bill will have a major impact on the majority of taxpayers most of whom will not thank the Chancellor for his determination to avoid a straightforward rise in tax rates only to rake in more tax revenue through complex stealth taxes.

"While it is entirely appropriate that the Government clamps down on fraudulent activities such as carousel fraud, it may be counter-productive in the long term to take the same draconian attitude towards bona fide business transactions structured honestly to optimise the taxpayer's position.

"There is a huge gap between fraud and tax planning but the Government's attitude is that they are merely different sides of the same coin."

The 40 page booklet is available to download from the PKF website.
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
Susie Hughes Shout99.com 2006

View Comments (Flat Mode) Printer Version

Mail this to a friend
New guide on tax developments Susie Hughes - 23/06
    Re: New guide on tax developme... snodgrasse - 23/06
       Re: New guide on tax developme... FlyingByte - 23/06
       Re: New guide on tax developme... jjgradisher - 27/06
    Re: New guide on tax developme... DJL - 26/06
    Where the Trust Goes... jojo - 26/06
    Re: New guide on tax developme... djt - 4/07

Copyright 1999-2018, Shout99.com | All Rights Reserved
Privacy Notice and Terms of Use