Tax gaps tipped to be at fore of PBR
Private equity, non-doms and small family businesses' distribution of share profits among relatives may be in Darling's firing line
Tax breaks enjoyed by private equity giants are expected to be at the
forefront of Alistair Darling’s pre-Budget report.
The chancellor has brought forward his annual pre-Budget preview in a bid to
make up lost ground for the Labour Party after Gordon Brown was forced into a
humiliating U-turn on calling a surprise general election.
A withdrawal of private equity’s access to carried interest tax breaks, which
gifts them taper relief on their capital gains, may be on the cards.
After the taxman’s Arctic
systems loss, income splitting is also expected to be on the agenda.
Any major changes to the non-domiciled foreigner rules, which allow the rich
foreigners based in the UK to avoid paying tax on income generated outside the
UK, is thought to be unlikely.