I concur that such charges are usually immediate or with a relatively short timescale. Previous changes to capital gains tax have been. Not much previous form to suggest that any changes would be delayed to 6 April.
Sad to say, but in light of the expected changes to IR35 and/or T&S claims, there is likely to be a stampede of contractors giving up and closing down their limited companies, so The Treasury may have foreseen that, and in the knowledge that a lot of PSCs have a fairly high warchest, decided not to allow the highly beneficial 10% ER rate to those people. Wouldn't surprise me if they brought in (or tightened up) the qualifying conditions so that high "cash" balances weren't eligible for ER if they'd been built up over x number of years rather than realised recently from the sale of a business or asset. The CGT ER rules are spectacularly unclear about what "cash" balances would qualify anyway and it's been an area of uncertainty for years, so George could announce a "clarification" of the existing rules without making it a new law.
A very uncertain time to be a contractor.
Sad to say, but in light of the expected changes to IR35 and/or T&S claims, there is likely to be a stampede of contractors giving up and closing down their limited companies, so The Treasury may have foreseen that, and in the knowledge that a lot of PSCs have a fairly high warchest, decided not to allow the highly beneficial 10% ER rate to those people. Wouldn't surprise me if they brought in (or tightened up) the qualifying conditions so that high "cash" balances weren't eligible for ER if they'd been built up over x number of years rather than realised recently from the sale of a business or asset. The CGT ER rules are spectacularly unclear about what "cash" balances would qualify anyway and it's been an area of uncertainty for years, so George could announce a "clarification" of the existing rules without making it a new law.
A very uncertain time to be a contractor.
Comment