Income Shifting - Legislation postponed until 2009

The Chancellor didn't even mention income shifting in the Budget today, but it appears that plans to go ahead with the so-called "family business tax" have been postponed until 2009.

This is the excerpt from a Treasury Budget press release:

"The Government firmly believes it is unfair that some individuals can arrange their affairs to gain a tax advantage by shifting part of their income to another person who is subject to a lower rate of tax.

"The Government has considered the responses received to the recent consultation and believes that a further period of consultation will ensure that legislation in this area provides clarity and certainty for businesses and their advisers.

"The Government now intends to introduce legislation through Finance Bill 2009 and will not enact legislation effective from 6 April 2008."

----------
Sign Up! - Make sure you sign up to our FREE weekly newsletter for the latest tax news and advice for small companies. Posted March 13, 2008

Business Services

Compare Quotes

Latest articles in Income Shifting

Income Shifting - Legislation postponed until 2009
[March 13, 2008] Plans to go ahead with the controversial income shifting legislation have been shelved until 2009.

Income Shifting proposals condemned as "retarded"
[February 27, 2008] A leading business group has submitted its formal response to the Government's controversial income shifting proposals.

Income Shifting - Is a family business tax u-turn on the cards?
[February 18, 2008] Following the Chancellor's recent partial U-turn on Capital Gains Tax, there is now mounting pressure on the Treasury to backtrack on its controversial plans to ramp up tax on family firms in the recently announced income shifting proposals.

Family business taxation proposals slammed by business group
[December 12, 2007] The Government's latest proposed clampdown on family-run businesses - this time on 'income splitting' results in more criticism by leading business organisations.

Income Splitting could impose "horrific burden" on family businesses
[December 7, 2007] The Government has published a consultation document outlining how it intends to clamp down on so-called 'income splitting'. Critics say the proposals will impose a horrific burden on thousands of family businesses.

£500,000 bill for "Husband and Wife" tax case
[October 26, 2007] Taxpayers are facing a £500k bill after the taxman failed in its quest to pursue a family business through the courts over a disputed £7,000 tax bill.

Will there be a tax clampdown on family owned businesses?
[July 30, 2007] Following the Arctic Systems victory at the Lords last week, the Government has announced its intention to create new legislation which may cost family-owned businesses thousands.

Arctic Systems win at Lords - victory for small businesses
[July 25, 2007] The House of Lords have ruled in favour of Arctic Systems in a landmark small business taxation case which could have forced small businesses to pay huge tax liabilities.

Arctic Systems case - No tax certainty for family businesses
[June 21, 2007] The final arguments of a landmark Arctic Systems tax case, heard earlier this month in the House of Lords, will have a major impact on the future taxation of family businesses whether the taxman wins or loses, according

Arctic Systems "family tax" hearing begins at House of Lords
[June 5, 2007] A landmark family tax hearing began today in the House of Lords. This will be the final stage in the landmark case which will have implications for hundreds of thousands of family businesses.

Our Partners