PBR 2007: The highlights. By Simon Sweetman

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Strange things, these afternoons. The phone calls start about three minutes after the Chancellor sits down and just as Im trying to start downloading the documents and finding them under their fancy names (is that under meeting the aspirations of the British people or under Protecting Tax revenues?). And to be fair, I could download them just after he sat down.

So heres a summary, not without comments.

Income shifting

The government doesnt like it, as it said immediately after losing the Arctic Systems decision in the House of Lords, stamping its feet. It thinks its not fair to split your income: but its only not fair when its a distribution from a company or its partnership income. So there will be a consultation, but one of those consultations that start with draft legislation, which...

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Balance
Thanks Simon, at last, something with a bit more balance in it, over the past few days commentators have exercised their knees whilst castigating the government for doing the same.

I agee that much of the headline stuff eg income shifting, non-doms, nil rate bands & CGT changes have been knee jerk, politically and/or PR motivated but perhaps they now put us into a position we should have been in years ago?

The “encourage small business” measures rolled out over recent years have been ill conceived and clumsy and in most cases just encouraged people to switch their businesses to Ltd Companies.

The holiday is over, surely the ability to strike off your company paying 10% tax on the proceeds and starting up again or a husband/wife paying themselves £80K pa tax & NI free is unsustainable and, to my mind unfair on the rest of society.

Thanks again Simon for mentioning simplification. I for one punched the air at the prospect of no more taper relief and a single CGT rate.

At least these days we get 6 month’s notice of this stuff and for all those who can’t hack change, don’t forget it generates your fees.

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