Brown denies £2bn tax loophole
Chancellor Gordon Brown this week bullishly refuted claims he has created a £2bn tax loophole amid changes set to be made to the capital gains tax regime.
Chancellor Gordon Brown this week bullishly refuted claims he has created a £2bn tax loophole amid changes set to be made to the capital gains tax regime.
Speaking in the Commons Treasury Select Committee on Tuesday, the chancellor tackled challenges suggesting tax planners for wealthy individuals would encourage people to reclassify income as capital gains to slash their income tax liability.
However, Brown hit back stating current anti-avoidance measures would ensure a loophole was not created.
He added: ‘If there is evidence of any tax abuse, we will not hesitate to take further anti-avoidance measures to tackle the issue. We do not expect to lose revenues following the changes.’
Brown announced in the recent pre-Budget new tax breaks for employees and investors on gains they make from business assets such as shares in their own company.
The Treasury has costed the CGT changes at Pounds 10m rising to Pounds 40m by 2004/05. Critics suggested losses would come from individuals reclassifying income taxed at 40%, as capital gains, taxed at 10%.
Under the new rules, the CGT rate will fall to 20% after assets have been held for a year, and 10% after two years.
Links,/b>
Brown dodges taper relief anomaly
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThe amount of tax saved by businesses through HMRC’s Patent Box scheme has increased by 23% over the last five years, from £1.14 billion in 2017/18 to...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleThe legislation, which introduces a global minimum tax of at least 15% for multinational enterprises, aims to limit tax competition and ensure large c...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleAccountants must stay vigilant, adapt their tax strategies to evolving regulations, prioritize transparency, and foster collaboration with tax authori...
View articleAs the government prepares for re-election, PM Sunak promises to control spending in order to bring forth tax cuts next year Read More...
View articleThe Office for National Statistics revealed that the UK economy shrank by 0.3% in March after the economy grew by 0.1% in the previous three months Re...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View article