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The starting rate and basic rate thresholds for income tax purposes will rise to £2,230 and £34,600 respectively for 2007/08.The Income Tax (Indexation) Order 2007 (SI 2007/943) raises the 10% starting rate band limit from £2,150 in 2006/07 to £2,230 for 2007/08.The basic rate band limit is raised from £33,300 in 2006/07 to £34,600 in 2007/08.Income above £34,600 is charged to income tax at the rate of 40% for 2007/08.LinkStatutory Instrument 2007/943 Continue Reading

The capital gains tax annual exemption limit will rise to £9,200 from 6 April 2007.The Capital Gains Tax (Annual Exempt Amount) Order 2007 (SI 2007/942) raises the annual CGT exemption from £8,800 in 2006/07 to £9,200 in 2007/08.LinkStatutory Instrument 2007/942 Continue Reading

The threshold above which businesses must register for VAT is to rise to £64,000 from 1 April 2007.The Value Added Tax (Increase of Registration Limits) Order 2007 (SI 2007/941) increases the VAT registration limits for taxable supplies and for acquisitions from other member States from £61,000 to £64,000, with effect from 1st April 2007.This Order also increases the limit for cancellation of registration in the case of taxable supplies from £59,000 to £62,000, and in ... Continue Reading

The Tax Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) has expressed concerns about the underlying principles of Planning Gain Supplement (PGS).The PGS was proposed by Kate Barker in her review of housing supply as a means of releasing the land value created by the planning process to help finance the infrastructure needed to support new housing and growth. Broadly, it will be based on the uplift in value arising as a result of the planning process, although ... Continue Reading

The Forum of Private Business (FPB) has published its wish list for the Chancellor ahead of his Budget speech tomorrow (21 March).The FPB, which represents 25,000 small and medium-sized businesses across the UK, is calling for action from Gordon Brown to help make the UK a country in which smaller businesses can survive and thrive.In particular, the FPB's is asking the Government to:amend the Low Value Consignment Relief (LVCR) offshore VAT loophole - Goods worth less than £18, such as ... Continue Reading

In advance of the tomorrow's (21st March) Budget, the Government has confirmed that the much talked about VAT "reverse charge" anti-MITC fraud measure will come into force on 1 June 2007.The measure is an important part of the Government's strategy to tackle Missing Trader Intra-Community (MTIC) fraud. It will see a new VAT accounting system applied to mobile phones and computer chips, which are the goods most commonly used in the fraud. By removing the opportunity to steal VAT ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP highlights further practical points on the inheritance tax changes to trusts following Finance Act 2006.ContextMore interesting points arose in the second LexisNexis Conference on the Taxation of Trusts on 5 October 2006.Business property relief: future planningBPR can be exploited by a passive portfolio of AIM trading companies.  Some commentators are suggesting that once the two-year minimum holding period has expired the shares can be given to a ... Continue Reading

Andrew Goodall, CTA provides an overview on an important capital gains tax relief for traders.IntroductionThe effect of roll-over relief is to defer a chargeable gain where the proceeds of disposal of business assets (the ‘old assets’) are used to invest in new business assets. The old and the new assets must be used in the business. The relief must be claimed. Spouses and civil partners are separate persons for roll-over relief. Roll-over relief is applied by deducting the gain ... Continue Reading

Bob Fraser MBE, MBA, MA, FPFS TEP outlines the tax treatment and considerations for companies investing in Capital Redemption Bonds.IntroductionChanges made in 2005 to the tax treatment of Capital Redemption Bonds (CRB) owned as investments by companies mean that these may not now be as tax efficient as previously.There are also tax reporting requirements of which company directors need to be aware. Although this legislation is now 2 years old, there are still many companies with these CRBs who are ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 16 MarchWhat's new?How to Pay - Further information about SA Payments;Pensions tax simplification: Surveys of Employers and FFinancial Services Industry;New forms for submitting personal pension relief at source claims;Details of a change in processing of 2D barcoded land transaction returns from 1 June 2007;Tax Credits: The decriptions to forms WTC1 and WTC2 have been amended to include additional information;HMRC ... Continue Reading