Pre-Budget Report date announced

The date for the chancellor’s ninth pre-Budget report is 5 December, HM
Revenue & Customs has revealed.

Experts in the profession have said that headline-grabbing tax rises are
‘unlikely’ in this year’s autumn PBR, however, many have suggested that there
are still likely to be plenty of changes revealed, including further
anti-avoidance measures.

Mark Schofield, tax partner, PricewaterhouseCoopers, said he anticipates that
Brown will use this PBR as an ‘opportunity to provide interim progress reports
on some of the reforms and consultations already in progress’.

‘No doubt we’ll hear an update on the “Golden Rule” and businesses should be
keeping their eyes and ears peeled for announcements about new changes.’

PwC’s top 10 predictions include:

• Corporation tax reform
• The tax implications of International Financial Reporting Standards. These are
still causing difficulties, particularly on the transition. Further
clarification to iron out the concerns already expressed by the taxpayer and
HMRC would be welcomed.
• Statistics suggest that British companies are falling behind their overseas
rivals in investment in research and development
• Measures to ease the administrative burden for small business taxation could
be announced
• Plans to change the rules on leasing with probable confirmation of the switch
for ‘long funding’ leases expected
• A framework for taxing development gains
• Calls for Real Estate Investment Trusts should spark a commitment from the
chancellor to bring these new transparent property investment vehicles into
being
• A few further nips and tucks made to the pensions regime in advance of the new
pensions tax rules on 6 April 2006
• With major reviews underway about the powers that the combined HMRC should
have, some initial announcements on this are possible, but changes are unlikely
to take effect until April 2006
• With the PBR known sometimes as the ‘Green Budget’, it would be incomplete
without a reference to environmental taxes. A number of possible announcements
could be made, including something on how petrol and diesel duties will change