Budget to focus on tax loopholes

Link; Income tax loophole slammed shut

The Budget, which takes place on 17 March, will also likely see chancellor Gordon Brown further restrict incentives for small businesses, especially tax paid on owner-manager salaries.

The steps are part of the continuing closure of tax loopholes, which have already seen restrictions on the use of partnership losses used in securing investment in some British films, a move attacked by PKF.

‘The chancellor offers a tax incentive and then complains about tax avoidance when taxpayers choose to take it up,’ said Peter Penneycard, national director of tax at PKF.’

‘The government appears to want to box taxpayers into a stall so they can be milked to fill its funding gap, regardless of the consequences for British businesses. The film industry does not know whether it is coming or going. If this trend continues, it won’t be long before investing in a humble ISA will be seen as tax avoidance!’ Penneycard added.

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