Archive for the ‘Uncategorized’ Category

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.


Stamp Duty Land Tax (no news is mostly good news)

December 9, 2009

There has been widespread speculation concerning increases in rates as well as anti-avoidance measures to close such planning opportunities as remain. But no such changes have been announced today. This can only be good news for the property sector.

One proposed measure is the extension of the Disclosure Rules on SDLT avoidance (which requires scheme details to be given to HMRC) to high value residential buildings. This will come into efffect from 1 April 2010.

Green Taxes

December 9, 2009

The Chancellor announced:

  • £400 million additional support for offshore wind projects.
  • doubling the funding commitment to support four Carbon Capture and Storage demonstration projects, enabling £14 billion of investment;
  • ensure the UK is ready to face the challenges of the transition to a low carbon economy by creating Infrastructure UK;
  • £140 million of additional venture capital for innovative low-carbon businesses.
  • the Greener Boiler Incentive scheme offering £400 to households with the least efficient working boilers to upgrade to the highest efficiency models, saving households around £230 a year in energy bills;
  • £200 million more for Warm Front and increasing energy company support for the poorest from £150 million to £300 million each year by 2013-14.
  • In addition enhanced capital allowances are announced for electric vans, as well as reduced company car tax for electric vehicles.

    Bankers’ bonus tax

    December 9, 2009

    In a widely anticipated move, the Chancellor has introduced, with effect from today, a one-off  bank ‘supertax’ of 50 per cent on any individual discretionary bonus paid by a bank to an employee that is over £25,000.

    This is to be paid by the bank, not by the bank employee (although the employee will, of course, also have to pay, income tax at their top rate on any bonus they receive).

    We await the draft legislation.

    “Patent box” corporation tax rate

    December 9, 2009

    In a bid to increase investment in biosciences in the UK, the Chancellor has announced a 10% corporation tax rate on income from the exploitation of patents in the UK.  This is good news for the UK, enabling it to compete with other jurisdictions that have similar regimes.  However, it appears from his budget speech that it is limited to patents only, rather than all IP, so it does not go far enough in the bid to compete.  We await to see the detail in the Government Press Releases.