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| CIOT calls for deferral of CGT changes |
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The Chartered Institute of Taxation (CIOT) is calling for the proposed capital gains tax (CGT) changes for trusts and companies set up by UK resident non-domiciliaries to be deferred until a proper assessment can be made of the impact on the UK economy.
Commenting on the proposals announced in the 2007 Pre-Budget Report in October, John Barnett, CIOT spokesman, said: "As well as introducing a £30k p.a. charge for non-doms, the pre-Budget report proposals also made vague reference to extending certain anti-avoidance provisions which do not currently affect non-doms. Although it is not entirely clear, we understand that under this heading the government may be contemplating changing the CGT treatment of offshore trusts and companies set up by non-doms. The Institute believes there to be a significant danger that non-UK domiciliaries will move their investments out of the UK and potentially even relocate altogether. The loss to the UK economy as a whole might be substantial. The City of London could be particularly affected as could other specific sectors such as the international art market (which could easily relocate to New York or elsewhere). Potential changes of this sort are of an entirely different magnitude to the £30k proposals and should not be enacted without a careful study of the economic effects. The CIOT hopes that, if the suggestions as to the direction of change are indeed correct, implementation of any proposals is deferred until, say, April 2009 to allow for proper study and consultation. This would coincide with other aspects of the proposed changes which are already set to be delayed until that date. Chartered Institute of Taxation
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Friday, 30 November 2007 | 973 Hits |
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