Overview

An analysis by City firm Macfarlanes of the 2010 Budget, focusing particularly on tax issues.

Topics fall under the following headings:

Taxation of Individuals

Private client summary
Confirmation of income tax measures for high earners
ISAs: raising the contribution limit
Capital gains tax: preservation of existing rate and extension of entrepreneurs’ relief
Inheritance tax: freezing the nil-rate band and tackling avoidance
Extension of charity tax reliefs to EU organisations
Adjustments to the income tax regime for settlor interested trusts
The remittance basis of taxation: change to the definition of “relevant person”
Tackling offshore tax evasion

Business Taxation

Annual investment allowance
Bank Payroll Tax
Capital distributions
Consortium relief
Amendments to the “ worldwide debt cap” legislation
Changes to accounting standards
Release of loans to participators in close companies
Venture Capital Trust and Enterprise Investment Scheme
The Enterprise Management Incentives (EMI) rules
Stamp duty and SDRT on transactions through a clearing house

Corporate Anti-avoidance

Disclosure of avoidance schemes
Share Incentive Plans (“SIP”)
Company Share Option Plans (“CSOP”)
Employment related securities and employment benefit trusts
Security for PAYE And NICs
Risk transfer schemes
Double tax relief
Life insurance companies: apportionment of income and gains
Sale of lessor companies
Transactions in securities rules

Property Taxation

Stamp duty land tax for first time buyers
Increase in SDLT rates
Partnership anti-avoidance
Overpayments of SDLT
Business rates
Real Estate Investment Trusts: stock dividends

Value Added Tax

Increased turnover thresholds for registration and deregistration
Change to zero-rating of “qualifying” aircraft
Postal services
Reverse charge for emissions allowances
“Lennartz” accounting