PRE-BUDGET REPORT
following points are of interest: a separate category. Employers a gain on disposal of another anTi-avOiDanCE – ThE
n As already announced, the main and employees will need to look business asset can be rolled over CRaCkDOWn COnTinUEs
rates of fuel duty will increase in at the effect of these changes into an FHL property, and as Measures are to be taken to end
real terms by a further 1p a litre when renewing fleets or replacing matters stand at present, there several tax avoidance schemes,
from April 2010 and by a further individual cars. would be no clawback of the including schemes in relation to
1p a litre each year until 2013. relief on 5 April 2010. There will capital allowances, the sale of lessor
n For a five-year period beginning PlanninG POssiBiliTiEs also be no balancing adjustment companies and inheritance tax.
in April 2010 there will be no BEfORE 6 aPRil 2010 at that date in relation to capital A new penalty of up to 100 per
benefit in kind charge where There had been concerns that the allowances claimed on assets that cent will be introduced for failure
employees are provided with an Chancellor would introduce were acquired in the course of to notify HMRC of the opening
electric-powered company car or measures to counter arrangements carrying on an FHL business. of a new offshore bank account.
van, and new electric vans will designed to avoid the forthcoming This means that the combined
qualify for a 100 per cent capital 50 per cent income tax rate on
“The Conservatives
penalty for non-notification and
allowance on the cost from April income above £150,000. However, the deliberate non-declaration of
2010. These measures should this has not happened, nor has
may just go about
tax could amount to 200 per cent
encourage the production and there been any indication so far in the worst cases.
use of electric cars and vans. of an increase in the capital gains
things a little
HMRC is also considering
n Tax on the provision of other tax rate of 18 per cent, so there is requiring UK resident settlors
company cars and private fuel still a window in which taxpayers
differently, with
of trusts to notify it when they
will in most cases increase from and advisers can consider various transfer assets into a non-resident
April 2012, due to changes to strategies before 6 April 2010.
perhaps more
trust or an underlying company.
the CO
2
emission thresholds. A similar window exists until
The changes will include a new the favourable treatment of
emphasis on
GREEn is sTill GOOD
10 per cent band for cars with furnished holiday lettings (FHL) Some industry sectors will continue
CO
2
emissions of less than ends on 5 April 2010. Qualifying
reducing public
to benefit from ‘green’ initiatives:
100 g/km, as a result of which FHLs currently attract several n Firms who manufacture central
Qualifying Low Emissions Cars reliefs and allowances, and it is
sector spending”
heating boilers will be hoping that
(QUALECS) will no longer exist as particularly worth noting that a new ‘boiler scrappage’ scheme
worth £400 for up to 125,000
households will do for them what
Manchester,
the car scrappage scheme has
done for the motor industry.
Leeds city
n Warm Front will also be
provided with extra resources
regions
to help 75,000 households with
confirmed
heating and insulation.
n There will be additional
support for offshore wind
projects from April 2010 to March
Local public transport leaders 2014, and additional funding for
have welcomed last week’s low carbon industries.
Pre-Budget Report confirmation n Income received by those who
of formal city region status for generate small scale renewable
Greater Manchester and Leeds, energy for their home thorough
both of which will now gain the clean energy cash-back
increased devolved powers. scheme will be tax free.
Greater Manchester has also been
designated the UK’s first ‘low Switch on for the Leeds City Region Pilot agreement sTill a BUmPy ROaD ahEaD
carbon economic area for the built If the Conservative party wins
environment’, which will bring a leisure reasons. marks the switch-on for the Leeds the general election, it would
stronger focus on transport, and is A spokesperson for the Greater City Region Pilot agreement, be unlikely to shelve or repeal
set to become a formal integrated Manchester Passenger Transport signed off on 27 November by 11 the measures announced by Mr
transport authority (ITA). Executive (GMPTE) told CBW: Yorkshire local authorities. This Darling – it too would have to
The Confederation of Passenger “Efficient and effective public reflects a wide-ranging analysis address the fiscal deficit, and the
Transport in the North West transport services and networks of transport challenges including PBR package is just a start. As
“certainly believes benefits will are critical in supporting the risks of severe congestion we have said, more tax rises and
accrue from Manchester’s greater continued economic, social and and overcrowding resulting spending cuts will be required
integration of policy areas such as environmental development from planned housing and – the Conservatives may just go
planning, regeneration, economic of the Manchester city-region, employment growth. about things a little differently,
development and transport”, with the bus having a leading It also records concerns over with perhaps more emphasis
Regional Manager Phillipa role to play. The government is recent declines in bus usage on reducing public sector
Sudlow told CBW. “We support now looking at how new powers and service networks that risk spending than on introducing tax
anything that encourages better and responsibilities on transport limiting prospects of reducing measures that could further harm
use and development of existing may be devolved to Greater dependence on private car businesses. But as they have said:
transport networks to benefit Manchester and work is ongoing journeys. “We will now be working “We are all in this together”!
those who need to travel to a to determine the degree and actively to reverse these,” Leeds
destination whether for work, shape of any potential changes”. Regional Policy Project Manager Paul Howard is tax director with
shopping, accessing services or For Leeds, the confirmation James Flanagan told CBW. BDO LLP. paul.howard@bdo.co.uk
30 CBW December 16, 2009
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