Is anyone aware of what is happening with respect to Income Shifting legislation? My accountant has blogged about this recently but its unclear to me what is changing and when any changes may come into force. I've had a look in the links on the right but there doesn't appear to be anything particularly new there. Can't find any recent threads on the topic either.
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Section 660A - Changes on the horizon?
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Firstly, S660A became S624 years ago.
I haven't heard a single thing about changes to the settlements legislation or any other new legislation that might be aimed at tackling "income shifting".
If you have, perhaps you'd like to share it? What has your accountant blogged about? -
Thanks for the clarification. The blog seems to have disappeared this morning. Perhaps if was out of date information published by mistake. If I get any more news, I'll update.
Originally posted by TheCyclingProgrammer View PostFirstly, S660A became S624 years ago.
I haven't heard a single thing about changes to the settlements legislation or any other new legislation that might be aimed at tackling "income shifting".
If you have, perhaps you'd like to share it? What has your accountant blogged about?Comment
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Whatever it is it would have to be pretty heavy to overturn the Arctic judgement, which pretty much set in stone that between spouses it is entirely legal and permissible. But I've not heard any rumours of change myself.
Of course the old Brown/Darling lash up of the Family Business Tax (mysteriously appearing days after the final Arctic decision was handed down...) is still out there in draft form. I suppose it could be resurrected, but it would face some extremely serious opposition if it were.Blog? What blog...?Comment
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Yep total agree after reading up a bit about this yesterday. 'Spousal exemption' conditions seem to be firmly in place and not going anywhere.
Originally posted by malvolio View PostWhatever it is it would have to be pretty heavy to overturn the Arctic judgement, which pretty much set in stone that between spouses it is entirely legal and permissible. But I've not heard any rumours of change myself.
Of course the old Brown/Darling lash up of the Family Business Tax (mysteriously appearing days after the final Arctic decision was handed down...) is still out there in draft form. I suppose it could be resurrected, but it would face some extremely serious opposition if it were.Comment
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It's pretty pointless changing anything WRT this IMO. When the divi tax kicks in at GBP 2k and the inevitable increase in tax rate from 7.5% happens. Income shifting legislation becomes pointless?Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Originally posted by malvolio View PostWhatever it is it would have to be pretty heavy to overturn the Arctic judgement, which pretty much set in stone that between spouses it is entirely legal and permissible
Like you say, they tried to legislate around this with the "Family Business Tax" but it didn't make it very far. I don't think we should rule out somebody trying to tackle this again in the future though it has to be said, it's been nearly a decade now with not much activity in this area - there are easier targets.Comment
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Originally posted by Fred Bloggs View PostIt's pretty pointless changing anything WRT this IMO. When the divi tax kicks in at GBP 2k and the inevitable increase in tax rate from 7.5% happens. Income shifting legislation becomes pointless?Comment
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Originally posted by TheCyclingProgrammer View PostNot at all. £90k in profit shared 50/50 between two taxpayers with no other sources of income would save significant tax compared to one - about £12-13k I think.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Originally posted by Fred Bloggs View PostIMO, to be legislated away over the next parliament or two. The proposals now in the long grass will stay there. Make no mistake, the tax benefits enjoyed to date by contractors are rapidly coming to an end.Comment
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