: Pre Budget day : Tax Plus Blog

Pre-Budget Report 2009 - Capital Gains Tax

Posted on December 1, 2009 by Lisa Spearman

It has been thought for some time that the rate of Capital Gains Tax (CGT) must increase to reduce the difference between it and the top rates of income tax. It was – and perhaps is – more a question of when than if. However, rumours are now flying that the rate of capital gains tax will go up with effect from the pre-budget report rather than the more usual 6 April. It would be rare although not entirely unheard of for a direct tax rate to increase during a fiscal year.

Clearly these are only rumours and we won’t know until the Chancellor’s speech on 9 December but if the 18% rate is important to you and you are in a position to do so you may wish to ensure that any capital gains tax transactions go through before 8 December.

Stay in touch with our blogs during and after the Chancellor’s speech to find out what is actually announced.

We will be blogging on SME Plus Blog and Tax Plus Blog on Pre-Budget Report day. If you do not already subscribe to our blogs click here for SME Plus Blog or here for Tax Plus Blog to ensure you get our comment and analysis as and when it happens.

Lisa Spearman is a partner at Mercer & Hole. If you would like to discuss the contents of this post with Lisa you can call her on 020 7353 1597.

Pre-Budget Report 2009 - Tories set date for next year's (second) Budget

Posted on November 24, 2009 by Barry Hallam

Even before the Chancellor’s Pre-Budget Report 2009 on 9 December the Conservative Party has indicated that they will have an 'emergency' Budget within fifty days of winning the general election next year.

Highlights of their proposals are:

a reduction in corporation tax to 25% (20% small companies)
increasing the stamp duty land tax threshold to £250,000
raising the transferable IHT nil rate band to £1million
a simple annual levy on all non-domiciles who want to avoid paying tax on their offshore income, in return for a promise not to change their tax regime for a Parliament.

It remains to be seen whether the Pre-Budget Report picks up on any of these ideas.

We will be blogging on SME Plus Blog and Tax Plus Blog on Pre-Budget Report day. If you do not already subscribe to our blogs click here for SME Plus Blog or here for Tax Plus Blog to ensure you get our comment and analysis as and when it happens.

Barry Hallam is a senior manager at Mercer & Hole. If you would like to discuss the contents of this post with Barry you can call him on 020 7353 1597.

Pre-Budget Report 2009 - Equitable liability saved - announcement in Pre-Budget Report?

Posted on November 19, 2009 by Barry Hallam

Earlier this year HM Revenue & Customs (HMRC) announced that from April 2010 it would not be possible to claim the concessionary relief under the concept of 'Equitable Liability'. Essentially this was a way that HMRC was able to take a common sense and equitable view regarding the collection of a tax charge which although technically correct was clearly inequitable with the circumstances of the case.

For example, a taxpayer may have ignored their tax position for years prompting estimated assessments by HMRC which became final and conclusive and valid for collection. When the taxpayer eventually addressed the problem the calculation of the tax due showed a much reduced position. In cases such as this HMRC was able to dispense with collection of the incorrect tax. Many in the tax profession objected to this and a campaign was spearheaded by the Chartered Institute of Taxation.

The CIOT has now heard from HMRC that they will be legislating 'at the earliest opportunity' to retain the practice. Perhaps there will be a formal announcement in the Pre-Budget Report on 9 December.

We will be blogging on SME Plus Blog and Tax Plus Blog on Pre-Budget Report day. If you do not already subscribe to our blogs click here for SME Plus Blog or here for Tax Plus Blog to ensure you get our comment and analysis as and when it happens.

Barry Hallam is a senior manager at Mercer & Hole. If you would like to discuss the contents of this post with Barry you can call him on 020 7353 1597.

Tags: Alistair Darling Pre Budget, Budget, CIOT, Chancellors Pre Budget 2009, Economic outlook, Equitable liability saved, HMRC, House of Commons, Pre Budget, Pre Budget 2009, Pre Budget Report 2009, Pre Budget day, Pre Budget economic report 2009, Tax Plus Blog Pre Budget 2009, UK Pre Budget, UK Pre Budget 2009, UK economy, Under debate

Pre-Budget Report 2009 - Chancellor's statement announced for Wednesday 9 December 2009

Posted on November 10, 2009 by Lisa Spearman

Chancellor Alistair Darling has confirmed that he will make his Pre-Budget Report statement on Wednesday 9 December 2009. We will be providing full analysis of Pre-Budget Report announcements on the day.