Government consults on income tax relief

The government has asked for views on its proposal to cap income tax relief from April 2013 in an effort to stop wealthy individuals from using tax breaks to avoid tax.

As announced in the 2012 Budget, the cap will be set at £50,000 or 25% of an individual’s income - whichever is greater. The aim is to stop individuals from reducing their income tax bills to zero by using these income tax reliefs “to excess”, the Treasury consultation says.

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Comments
johnjenkins's picture

Me feels    3 thanks

johnjenkins | | Permalink

another U turn coming along. Has anyone read DC's new autobiography, "50 shades of bullshit"?

...i can picture it now....

justsotax | | Permalink

...'read about the steamy exploits of a high powered exec fumbling in the dark for something long and hard (his backbone maybe?!)....'

Did I get a point in buzzword bingo - "wealthy"    1 thanks

mikewhit | | Permalink

"in an effort to stop wealthy individuals from using tax breaks to avoid tax."

...you can't help but imagine the meetings....

justsotax | | Permalink

....'The aim is to stop individuals from reducing their income tax bills to zero by using these income tax reliefs'

 

So DC and GO discuss limiting the amount of expenses a business can claim....fuel - no you can't have that....marketing.....no you can't have that.....  and onto MP's allowances....ah well that is different you see....

rockallj's picture

And what about the ordinary Joe/Jane......?

rockallj | | Permalink

And what about the ordinary Joe/Jane with "normal income" and perhaps a loss making business, or qualifying interest for say, the purchase of a partnership/co. shares?  It will have a massive impact

Not particular unusual scenarios are they?

This will have a massive impact on ordinary folk whilst the richer will find other ways and means.

ShirleyM's picture

@rockallj

ShirleyM | | Permalink

It's the same old story.

New legislation is introduced to punish the 'naughty' ones that dodge taxes, but it affects everyone (even those who didn't use the loopholes) and the 'naughty ones' just find another way around the legislation.

John Stokdyk's picture

@mikewhit

John Stokdyk | | Permalink

Curses! Foiled again... You win more than a point, Mike. As previously posted, I promised a £15 M&S voucher to any member who caught us out using the offending hack-phrase.

So, you'll be able to have a drink/T-shirt/Dinner in for 2 on us as you smugly reflect on your contribution to semantic accuracy on AccountingWEB.

Enjoy it!

(I'll PM you to make the arrangements)