I was shocked to read on the Treasury website today that they are suggesting the abolishment of 50 of our precious tax reliefs.The Office of Tax Simplification is a department employed by the Treasury to help simplify tax policy but is this simplifying matters or just getting more tax out of us.
In its review of over 150 reliefs, the final report on which has been submitted to the Chancellor, the OTS suggested that 54 remained unchanged and that 47 be scrapped. A further 17 should be simplified, while the remainder require further examination.Of those that could be simplified, the OTS proposed that the rule which demands a 5 per cent shareholding in order for business owners to qualify for the 10 per cent entrepreneurs' relief rate of capital gains tax be dropped.
The report also suggested introducing a checklist for the four reliefs covering the enterprise investment scheme.
John Whiting, tax director for the OTS, said: "It's clear that many of the reliefs are valuable and clear in their purpose and operation, so we have not sought to change them, but others need simplifying or extending to be properly effective. Some have simply expired and have no further use; a number are poorly targeted leading to negligible value, or their benefit is outweighed by the administrative burden in using them.way."
I believe the forthcoming budget is going to shock people. Higher taxes less reliefs times ahead dont look too bright. I say act now, arrange meetings with your Tax Advisor/accountant and have a full review of your circumstances.
You can contact me at mitch@ljd.uk.com
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