New tax avoidance rule is a recipe for chaos and disorder December 12, 2012 THIS week’s draft Finance Bill gave a number of revealing insights into the mind of the chancellor and the direction the 2013 Budget will likely take. Among its contents was a long-overdue update on the general anti-abuse rule (GAAR) – the government’s much-hyped silver bullet for the scourge of tax avoidance. Over the past year, [...]
Rules against aggressive tax avoidance delayed December 11, 2012 NEW rules that will ban companies and individuals from engaging in aggressive tax avoidance schemes will not be implemented until at least summer 2013, according to draft legislation released yesterday. The General Anti Avoidance Rule (GAAR), which will give HMRC the power to identify and act against legal tax arrangements that are “abusive”, was due to be enforced [...]
Why you shouldn’t put off saving for your retirement December 9, 2012 AT A time when people are failing to save enough for their retirement, George Osborne’s move – announced in last week’s Autumn Statement – to reduce the tax relief on pensions is unwelcome. The chancellor cut the annual tax relief for wealthy earners from £50,000 to £40,000, and reduced the lifetime allowance from £1.5m to [...]
America’s bullying on foreign tax will penalise UK firms December 6, 2012 NEXT week, the Treasury will publish draft legislation detailing how Britain’s financial sector will be forced to implement a punitive piece of US tax legislation. Although hailed this week by George Osborne as a weapon in the fight against tax avoidance, the Foreign Account Tax Compliance Act (Fatca) has severe implications for hundreds of British firms. [...]
Our at-a-glance guide to Osborne’s mini-Budget December 5, 2012 THE UK ECONOMIC OUTLOOK ■ The Office for Budget Responsibility (OBR) has revised down its forecast for UK growth and revised up its forecast for public sector borrowing. It says the government is no longer likely to meet its target of reducing debt as a proportion of GDP in 2015-16, breaking its supplementary fiscal rule. [...]
Osborne’s axe on pensions tax relief extends beyond wealthy December 5, 2012 GOVERNMENT plans to limit tax-free pension saving could hit a wide swathe of society, not just the wealthiest, industry experts warned. The maximum amount a saver can put into a pension over their life, without facing tax, will be sliced from £1.5m to £1.25m in 2014-5, having already been cut from £1.8m. And the annual tax [...]
HMRC funds to fight avoidance December 5, 2012 HMRC will receive an additional £77m to fight tax avoidance following yesterday’s announcement. There will also be new restrictions on the tax arrangements of firms that bid for government business, something that could have an adverse effect on outsourcers. Jason Collins of law firm Pinsent Masons said: “Reading between the lines, companies will not get government [...]
Statement brings halt to £425m rates hike on small businesses December 5, 2012 BUSINESS rate relief will not halve in April, as planned, but will be extended into 2014, it was revealed yesterday. Businesses using only one property, with a rateable value of £6,000 or less, currently pay nothing whatsoever in business rates – but were set to lose half their rate relief as the measure expired at the [...]
Rapid Responses December 4, 2012 The tax debate [Re: Politicians need to stop moralising – and reform our taxes, yesterday] Britain’s tax system does not reward the working poor. Nobody on low wages should pay income tax or national insurance, while also receiving benefits. Chris Hobson We shouldn’t bring the level of tax into the debate about tax reform. To critics [...]
Politicians need to stop moralising – and reform our taxes December 3, 2012 LIKE many people, I loathe the UK tax system. It fails to treat everyone equally and is either extraordinarily punitive or pathetically soft. Scandalously, some big companies pay huge amounts of corporation tax while other similar businesses don’t. The aim must be revolutionary tax reform – all streams of income from labour and capital generated [...]