Tax Matters August 2010
Welcome
Welcome to our Summer edition of Tax Matters, Littlejohn's newsletter for clients and contacts that helps you stay on top of tax-related legislation and deadlines.
Two Budgets for one financial year mean more than the usual number of significant changes coming up, from both a personal and a corporate taxation perspective.
The capital gains tax increase was widely forecast but it was not as high as anticipated although few expected the Chancellor to implement the change immediately. The result is a year in which different capital gains tax rates will apply at different points. Our article examines the complications this will inevitably bring. Also on the personal tax front, we still await statutory rules to define when a person is UK domiciled for tax purposes. A recent case delivers worrying news for many people seeking to maintain they are not resident in the UK.
Capital allowances are being reduced significantly while VAT is going up. We advise on how companies can make the most of the capital allowances available before the limits are reduced. And we alert you to HMRC's response to the VAT rate roller-coaster: new anti-forestalling rules. We also report on an enforced change in the format for online filing of tax returns, due to be implemented within the year. We shall revisit this topic over the next few editions of Tax Matters.
If you need advice on any aspect of your tax affairs, or would like to discuss any of the issues raised in this newsletter, please don't hesitate to contact us.
Andrew Jones
Head of Tax Division
In this issue:
Personal tax
Business tax
VAT
