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Miscellaneous
Inheritance tax
The Pre-Budget Report documentation includes a
reference to the scenario where the owner of an asset makes a gift of it to
remove it from his/her estate for inheritance tax (IHT) purposes. However if
the former owner continues to enjoy the benefits of ownership then the gift is
generally ineffective for IHT purposes since the ‘gift with
reservation’ rules apply. The government is concerned that the rules can
be avoided and is seeking to amend them. No detail is available at this stage.
The government has stated that they will introduce legislation in 2004
following consultation.
Community amateur sports clubs (CASCs)
The Chancellor referred in his speech to
giving CASCs 80% rates relief from April 2004. The government also intends to
double the thresholds at which CASCs are exempt from corporation tax from
£25,000 to £50,000.
Gift Aid Relief
The Gift Aid provisions permit donors to
receive only very limited benefits back from a charity. Certain heritage and
conservation charities have, using a special statutory exemption, introduced
free day admission in return for a donation that attracts Gift Aid relief. The
government will legislate in 2004 to block this loophole.
Alcohol strategy
The government will consult on the possibility
of stamping bottles of spirits in an attempt to tackle organised spirits fraud.
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