Controversial plans to tax family businesses have been indefinitely postponed
by the government.
The introduction of income shifting legislation for April 2009 has been
postponed, a year after its previous deferral
Advisers welcomed the move, saying that its introduction would have ‘jarred’
against government plans to help small businesses.
‘It would have struck the wrong note,’ said visiting professor at Kings
College Anne Redston. ‘It would be nice to think they’ve come round to our way
She warned that the government was likely to revisit the issue in the future.
‘It’s not abandoned – it’s just in the wings,’ she added.
CIoT deputy president Andrew Hubbard said income shifting legislation would
have made the complicated task of taxing small family businesses even harder.
‘It would have created a huge administration burden on all small businesses,
would probably not have brought in significant additional taxation revenues and
would have been a massive distraction at a time when businesses need to devote
all of their energies to managing through the economic crisis.’
The government claimed it would lose out on nearly £500m in revenues over the
next four years by not implementing the law.
Colin responds to the call for 'Darwinism' in accountancy
Does Darwin's theory apply to taxation? Colin ponders...
Colin comments on the effect of Brexit on the influx of partners at KPMG
Colin provides insight into the Tesco and Unilever scandal over Marmite