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Controlled Foreign Companies (CFCs)

Changes to the CFC rules to ensure that the UK receives a fairer share of tax on the profits of multinationals were announced.

The CFC rules are designed to stop UK companies avoiding tax in this country by diverting income to subsidiaries (CFCs) in tax havens and preferential regimes. The rules work by requiring UK companies to pay an amount of CFC tax equal to any tax that would otherwise be avoided.

The measures build on the steps taken in the last two Budgets to reinforce the fairness and effectiveness of the CFC rules, and form part of a continuing resolve to ensure that the rules keep pace with developments in the global economy.

UK companies will continue to be exempt in respect of CFCs which are not involved in UK tax avoidance.

The Budget changes will strengthen the legislation and update the rules to take account of developments in the ways multinationals are structured and do business. The motive test in the CFC rules will ensure that UK companies will continue to be exempt in respect of CFCs which are not involved in UK tax avoidance.


Allied Irish gets mobile

Allied Irish Banks today announced that it is to rollout a new mobile phone banking service to customers from next month. Its “24 hour mobile” service is the latest development in the implementation of AIB&#39s strategy for “mobile” commerce. Subsequent phases will see a range of transaction based financial services using Wap technology. This will […]

Income Tax

RATES OF TAXTHE STARTING RATE OF INCOME TAXThe starting rate of 10% for the tax year 2000/2001 applies on the first £1,520 of taxable income (i.e. after allowances and reliefs). It should be noted that the starting rate does not apply to trusts.THE BASIC RATE OF INCOME TAXFor 2000/2001, the basic rate of income tax […]

Capital Allowances

The Chancellor has announced that the enhanced 40% first year capital allowance first announced in his 1997 Budget will be made permanent for all small and medium sized businesses. It is estimated that more than 99 per cent of all businesses will qualify. The aim of the increased first year allowance is to help a […]

North South housing divide may be closing

The latest survey by the Royal Institution of Chartered Surveyors shows the first signs the North-South gap in house prices may be starting to close.Over the last month there has been a sharp upturn in the property market in the North West and Yorkshire & Humberside, with further strengthening in the Midlands and Wales. Even […]

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


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