Capital Gains Tax (CGT) is going to be reformed for individuals, trustees and personal representatives, but not for companies. New measures will apply from 6th April 2008.
Planning-gain Supplement (PCS):
Alistair Darling was cautious in his first Pre-budget Report
Correcting over zealous anti-avoidance rules for investment partnerships
The need for married couples and civil partners to plan for IHT by entering into nil rate band discretionary trusts and similar arrangements has been largely negated by a proposal in the Pre Budget
The Pensions Act 2007 introduces a number of changes to state pension arrangements, most of which are not intended to commence until 2011 and 2012.
With less new funding available for key public services, the Chancellor will step up the quest for public sector efficiency gain.
Remittance basis: Irish income
The Pre Budget Report includes a proposal to amend the tax treatment of income arising in Ireland to align it with income from other overseas sources.
Pre-planned reductions in main income and corporate tax rates have left the Chancellor, like his predecessor, looking for clever ways to raise other revenue, under guise of ‘simplification.’
The new Chancellor’s difficulty in emulating the free-spending, low-borrowing feats of his predecessor reflect the unique conditions Gordon Brown was able to exploit.