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Merger
The Chancellor
announced that the Inland Revenue and Customs and Excise are to merge.
Tax
avoidance
New disclosure
rules are to be introduced in relation to certain tax schemes. Broadly the
rules will require tax scheme promoters to provide details of their schemes to
the Inland Revenue shortly after the scheme is sold. The scheme will then be
registered and a reference number allocated. Taxpayers using such schemes will
then be required to include on their tax return the registration number of the
scheme.
Extra funding will be provided to the Inland Revenue to help
tackle fraud and tax avoidance.
Lloyd’s
underwriters
Individual
members of Lloyd’s who convert to underwriting through a corporate member
of Lloyd’s will be able to set off trading losses from underwriting years
before the transfer, against income derived from underwriting years after the
transfer. They may also be able to defer liability to capital gains tax if
assets held as funds are transferred to a company in exchange for
shares.
Landfill tax
As previously
announced the rate is increased from £14 to £15 per tonne with
effect from 1 April 2004. The rate is to be increased by £3 per tonne in
2005 and by at least that amount in later years on the way to a medium to
long-term rate of £35 per tonne.
The lower rate for inactive
waste remains at £2 per tonne.
Property
Investment Fund
The Chancellor
has launched a consultation on the most appropriate structure for a new
Property Investment Fund, a UK version of the successful US Real Estate
Investment Trusts. It is hoped that the new fund will encourage more efficient
investment in property and help to boost the private rented sector.
Immediate
needs annuities
A measure is to
be introduced to ensure the continued tax exemption of immediate needs annuity
payments made by an insurance company for the provision of an individual’s
long term care.
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