Author Archive

Banking bonus – further points

December 9, 2009

A few further points. 

The 50% levy will not be  deductible for corporation tax purposes.

It will be payable on 31 August 2010.

Although they are only stated as applying to bonuses awarded or paid before 6 April 2010 one could imagine that date maybe being extended.

It is not just banks – UK resident companies will be caught if they are authorised persons for the purposes of FSMA who accept deposits or whose activities consist in wholly or mainly certain regulated activities such as dealing in investments as principal or agent or arranging deals in investments. 

For the levy to apply, the employee’s duties must consist wholly or mainly in certain regulated activities such as accepting deposits, dealing in or arranging transactions in investments and lending money.  If any part of his duties  are performed in the UK in the year 2009/10 or he or she is UK resident in that time then the whole the bonus will be caught.

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Worldwide debt cap

December 9, 2009

The worldwide debt cap (by which interest relief for large groups will be restricted) is to be amended slightly in the Finance Bill 2010. The changes were first announced by a Ministerial Statement on 9 November 2009. The draft legislation has now been released – we’ll update further.

No change to CGT and VAT rates

December 9, 2009

Despite rumours and speculation there appears to be no change to the rate of CGT and VAT will revert to 17.5% (not higher) as from 1 January.