Merger
The Chancellor announced that the Inland Revenue and Customs and Excise are to merge.
Tax avoidance
New disclosure rules are to be introduced in relation to certain tax schemes. Broadly the rules will require tax scheme promoters to provide details of their schemes to the Inland Revenue shortly after the scheme is sold. The scheme will then be registered and a reference number allocated. Taxpayers using such schemes will then be required to include on their tax return the registration number of the scheme.
Extra funding will be provided to the Inland Revenue to help tackle fraud and tax avoidance.
Lloyd’s underwriters
Individual members of Lloyd’s who convert to underwriting through a corporate member of Lloyd’s will be able to set off trading losses from underwriting years before the transfer, against income derived from underwriting years after the transfer. They may also be able to defer liability to capital gains tax if assets held as funds are transferred to a company in exchange for shares.
Landfill tax
As previously announced the rate is increased from £14 to £15 per tonne with effect from 1 April 2004. The rate is to be increased by £3 per tonne in 2005 and by at least that amount in later years on the way to a medium to long-term rate of £35 per tonne.
The lower rate for inactive waste remains at £2 per tonne.
Property Investment Fund
The Chancellor has launched a consultation on the most appropriate structure for a new Property Investment Fund, a UK version of the successful US Real Estate Investment Trusts. It is hoped that the new fund will encourage more efficient investment in property and help to boost the private rented sector.
Immediate needs annuities
A measure is to be introduced to ensure the continued tax exemption of immediate needs annuity payments made by an insurance company for the provision of an individual’s long term care.
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