Date of Issue: 12th March 2008
As far as small business owners are concerned today’s budget speech held very few surprises with the Chancellor implementing changes he had previously announced to Capital Gains Tax and Capital Allowances.
He did however display a modicum of common sense by deferring the implementation of the planned Income Shifting legislation by 12 months to April 2009.
Graham Buckell, Bates Weston’s Tax Director, welcomed the delay.
“ I am hopeful that the Revenue will see sense on this issue and abandon their plans completely. Those who have been consulted on the issue by the Revenue, including the Institute of Chartered Accountants in England and Wales (ICAEW) and the Chartered Institute of Taxation had both broadly condemned the planned changes, and I believe that the proposals are wholly unworkable.”
Graham goes on to say,
“Recording a spouse or partners’ contribution to a business will be difficult to define and subject to change. Small businesses should be encouraged to focus on business development, not tied up in yet more red tape.”
The ICAEW commented recently that the Income shifting rules are too widely drafted to be workable. They went on to say that they deplored the growing practice of relatively brief legislation that then has to be supplemented with lengthy HMRC guidance because the primary legislation is not adequately drafted.
At least, it seems, on this occasion the Chancellor has chosen to listen to the weight of opinion ranged against these proposals, and has delayed their implementation to allow for a more thorough consultative process.
For further details, please contact:
Bridget Charlton, Marketing Manager
Email: bridgetc@batesweston.co.uk
or telephone 01332 365855
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