View more on these topics

“Govt should help those disadvantaged by abolition of 10% tax rate”

Treasury select committee chairman John McFall says the Government’s abolition of the 10 pence rate of income tax disadvantages mainly low income households and that the Government should help them.

McFall says those below the age of 65 with an income under £18,500 who are childless are most at risk of being hit who McFall says are “unreasonable” targets.

The Treasury Committee in its report on the 2008 Budget also says that there has been insufficient consideration of the possible impact of tax changes on the middle and lower income groups of non-domiciled taxpayers.

It says this is due to the focus on wealthy individual non-domiciles and says it is concerned that the new policies wil create a group of non-domiciled taxpayers who would be unwittingly in breach of the new law.

McFall says: “There has been too much focus on the very wealthy non-doms, and almost no notice taken of the low and middle income groups who will be affected by the changes. We have highlighted a serious risk that HMRC will be faced with the problems of potentially millions of foreign workers, either seeking advice or unwittingly in breach of the new law.

“While tax simplification is a laudable aim, it seems strange that the abolition of the 10 pence starting rate of income tax, disadvantages mainly low income households. As such, the Government must ensure that these people are identified, and appropriate help given to them to ensure they receive the benefits to which they are entitled.”

Recommended

Warning of broad brush approach to bonds

Advisers have warned life offices against using a “broad brush” approach to promote the benefits of bonds over mutual funds for self-preservation purposes following the capital gains tax changes.Accountants Financial Services managing director Paul Scarff says there is a flaw in the assumptions used by Standard Life head of savings and investment Ian McLeod, writing […]

Friends rebuffs 3.5bn Flowers’ bid

Friends Provident has rejected a 3.5bn offer from private equity group JC Flowers, saying it “significantly undervalues” the company.

Pain speaking

By the middle of last week, markets were feeling a little calmer and it was beginning to look as though the FTSE was capable of climbing above 6,000. However, the fact remains that news is still not improving. With UBS announcing further write-offs and its chief executive falling on his sword, it is clear that turmoil in credit markets has some way to run yet. In the UK, we saw the fourth consecutive month of falling house prices and the number of lenders withdrawing their mortgage products continues to grow.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com