Lobbying MPs over income shifting proposals proved very effective. 184 MPs signed the Early Day Motion on the topic below and the government announced that it was postponing the legislation in Budget 2008.
Article dated: 8 February 2008
The government has proposed new legislation designed to prevent what it terms as Income Shifting. Income shifting is a practice of splitting certain types of income of one person between two (or more) people in order to make use of the available tax allowances of those individuals.
The government proposes to remove any tax advantage gained from shifting income between individuals, however:
- The draft legislation will apply only income which arises through private company dividends or partnership profits. It remains perf...