TaxPersonal TaxTax concessions for ravaged businesses

Tax concessions for ravaged businesses

The Inland Revenue has confirmed interest will not be charged on tax deferred as a result of any financial difficulties brought about by the outbreak of foot and mouth disease.

Revenue officials confirmed a clause has been introduced to remove the need to charge on the deferred amounts while the outbreak continues to wreak havoc.

A spokesman for the Revenue, said: ‘The ruling applies to all businesses affected by the outbreak. This is a concession granted by the government and no time limit has been placed on when this will end.

‘Each case will be decided on merit and all businesses should contact us if they feel they have been affected, he added.’

The move came as the chief secretary to the Treasury, Andrew Smith MP, tabled a new clause to the Finance Bill, which confirmed the move.

It will provide specifically for the charge to interest to be removed where the Revenue has agreed, because of the effect of the foot-and-mouth disease outbreak, to defer payment of tax.

Current legislation requires interest to be charged on all unpaid tax from the date it becomes due until the date of payment. The Revenue can defer payment of tax, and both tax and interest can also ultimately be written off or remitted in certain circumstances.

Regulations will also be introduced to ensure interest is not charged on National Insurance contributions deferred in the same circumstances.

Links

Rural business wins tax concessions

Farmers in North East the hardest hit

Inland Revenue

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