Family Businesses Should Seek Advice II

Have the Revenue ever been accused of sour grapes?
Many people may know about the taxpayers' victory in the House of Lords, "Arctic Systems" referred to in our earlier article.

The victory is short-lived as the Chancellor has announced that there will be new legislation in the 2008 Budget to combat Income Shifting.
The new legislation will affect income in the form of distributions from a company (Dividends) or partnership profits.
To establish whether value shifting has taken place, taxpayers must consider factors such as the work done by the individuals, any investment made and the risks to which they are subject through the business.

And what about Capital Gains?

From 6 April 2008 we can say goodbye to indexation relief and taper relief. The sale of a business might previously have attracted a CGT liability of no more than 10% but from 6 April 2008 this will be subject to a flat rate charge of 18%.

Is the IHT giveaway a sweetener or merely a sleight of hand?

Have the Revenue ever been accused of sour grapes?
Many people may know about the taxpayers' victory in the House of Lords, "Arctic Systems" (see earlier article)

The victory is short-lived as the Chancellor has announced that there will be new legislation in the 2008 Budget to combat Income Shifting.