The Government has considered the responses received to the recent consultation on income shifting and has confirmed that it needs a further period of consultation to ensure that the legislation provides clarity and certainty for businesses and their advisers.
The Government now intends to introduce legislation through Finance Bill 2009 and will not enact legislation effective from 6 April 2008.
Commenting on this postponement, Andrew Hubbard, Vice-President of the Chartered Institute of Taxation (CIOT), said "The Chartered Institute of Taxation welcomes the Government's decision not to go ahead with its proposed income shifting legislation. The Institute's view has always been that the income shifting rules were a sticking plaster solution which did not address the real structural problems inherent in the ways that small businesses are currently taxed.
The Institute welcomes the Government's commitment to a wider consultation over the way in which small businesses are taxed and looks forward to taking part in the consultation."
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