2005 Finance (No 2) Act
Originally sent: April 12, 2005In my recent bulletin I referred to the fact that this year?s budget was not that critical. Obviously our lords and masters, I mean the public servants we elect to represent our interests, have the same opinion. The honourable members of the House of Commons spent an entire four hours reading, discussing and voting on the Act. That represents a whole minute a page. About the same time it took me to read it ? and I didn?t have to discuss it or vote on it. The Lords managed to get it in and out while spending just over 8 seconds a page. They must have been more successful with their photoreading course than I was! I am glad to know that the government of this country is in such careful hands and that our lawmakers are spending so much time reviewing our legislation.
Although this year?s Finance Act is certainly less controversial than last year?s, or than any we have come to expect from the current Government, there are nevertheless points raised in it which are worthy of attention ? even in this cut down version which the Government rapidly produced to replace the original bill so that they could rush it through before Parliament recesses ready for the General Election.
The new Trust Taxation is addressed in the Act, with a number of paragraphs relating to Trusts with vulnerable beneficiaries. An area which is quite complex and perhaps warranted some discussion.
We have a lot of detail relating to the way the new ?Sharia Mortgages? and similar products will work. An important change in our tax law.
There are changes in Film Tax Relief, and yet more anti-avoidance provisions for partnerships.
There is a rather different approach to the Nil Rate Band for Inheritance Tax, with the band being fixed in advance now for the next three years on a sliding scale, regardless of the actual inflation rate over that period. As this is a departure from past practice it was surely worthy of at least some discussion?
And last, but not least, the Government have taken away the relief they had been giving from Stamp Duty Land Tax on commercial property sales in disadvantaged areas. Quite a significant and possibly backward step.
In this fast changing world it is essential for you to keep a close eye on changes that can affect the advice you give your clients. I constantly keep my own knowledge up to date, as I am sure you can see from these bulletins.
Why not enrol on some of my focussed training days to see what ideas you can pick up which could benefit you and your clients? And for those of you who have already attended most or all of my days, maybe now is the time to repeat a day and see what has changed.
Adviser Breakthrough Training Solutions Ltd. takes no responsibility for loss occasioned by any person acting or refraining from action, or in consequence of any other person acting or refraining from action, as a result of the material in this article.
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