Budget Explained – Tax simplification

accawebmaster —  24 March 2011 — Leave a comment

By ACCA’s Budget team

The Government announced that it will abolish 43 tax reliefs, following a report and recommendations by the Office of Tax Simplification.

Tax reliefs to be abolished:

Those which have been targeted by the Finance Bill 2011 are:

  • Charities – transitional relief on distributions;
  • Millennium gift aid;
  • National Savings Bank ordinary account interest;
  • Payroll giving 10 per cent supplement;
  • Exemption for certain assignments by seamen;
  • Instruments relating to national Savings; and
  • Transfers in relation to ships and vessels.

Those scheduled for abolition in the Finance Bill 2012 are:

  • Payments to mariners to be disregarded;
  • Grants for giving up agricultural land;
  • Pool betting duty payments relating to safety improvement at football grounds or for the arts;
  • Mineral royalties;
  • Payments for the benefit of family members;
  • Cycle to work days – provision of meals;
  • Luncheon vouchers;
  • Pools payment for football ground improvements;
  • Pools payment for support for games;
  • Disregard for certain apprentices and students coming to the UK;
  • Assistance in identifying lost or stolen credit cards;
  • Nationalisation schemes; and tax reserve certificates issued by HM Treasury.

Future abolition:

  • Class 1A NICs – exemption for prescribed general earnings;
  • Class 4 NICs – allows deduction in next tax year of losses incurred in 1989-90 or previous tax year where losses from income other than trade or profession or vocation;
  • Deeply discounted securities – incidental expenses;
  • Life assurance premium relief;
  • Life assurance  premiums paid by employers under employer-financed retirement benefit schemes;
  • Capital allowances – flat conversion allowances;
  • Capital allowances – safety at sports grounds;
  • Certain leases granted by registered social landlords;
  • Disadvantaged area relief (Stamp Duty);
  • Exempt instruments;
  • Partial relief for company acquisitions;
  • Shared ownership transactions;
  • Transfers to registered social landlords;
  • Visiting forces and allied headquarters;
  • Disadvantaged area relief (SDLT);
  • Angostura bitters;
  • Black beer;
  • Land remediation relief;
  • Compensation for mis-sold pensions;
  • Harbour authorities;
  • Harbour reorganisation schemes; and
  • Transfers in relation to harbour reorganisations schemes.

Full ACCA Budget comment here

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