United Kingdom: Pre-Budget Report November 2008: Personal Tax Highlights

Jennifer Rudd/ November 27, 2008/ 3:30 p.m.

This article was very informative about the United Kingdom’s pre-budget. I found this interesting to read because of the crisis and situation that the country is in. The review is to focus on the role of the financial centers in the global economy and their long-term business strategies. The review arises in the context of severe financial turbulence and it is fair to anticipate that it will focus at least in part on tax practices in the offshore centers it covers. There were different changes that went on throughout the budget. For example, here are some anti-avoidance changes that I found to be interesting: "Qualified Investor Schemes - the 10 per cent individual ownership test to be replaced by 'a genuine diversity of ownership rule, film partnerships - further measures to be introduced to counter tax avoidance using film partnerships, plant and machinery leasing - measures to be introduced to counter avoidance planning which exploits loopholes in the current rules relating to capital allowances where plant and machinery is sold and leased back, disclosure of tax avoidance schemes - the current rules will be amended to simplify and improve the reporting of schemes and change the reporting date to the tax year of implementation in all cases, employee tax - certain rules relating to the taxation of employment related share awards are to be simplified, principle based anti-avoidance rules - the Finance Bill 2009 will contain anti-avoidance rules to tackle disguised interest and the transfer of income streams between taxpayers." I believe that each one of these would help out in some way. Since these are the anti-avoidance changes these would be changes that would not necessarily should be changed. Other aspects of the budget the need to be changed would help the economy boost back up. Hopefully the upcoming holidays will help and change the recession.
I think that this budget will help the economy. I feel that others would think the same. I am glad that the country is trying to get a base foundation to try to build it back up. I feel that if everyone helps out this could be accomplished.
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