The Treasury has launched a consultation on corporate tax reform that could lead to significant chan...
The Treasury has launched a consultation on corporate tax reform that could lead to significant changes to the way relief and indexation are applied to capital and income gains recorded by funds.
Among the consultation document's proposals are rationalisation of the way the schedular system taxes different types of income, changes to tax treatment of investment companies, and changes to the tax treatment of capital assets.
Specific proposals include changes to taxes on capital profits, which currently distort in favour of investments that produce capital gains rather than income.
The is a proposal to remove requirements for a company to qualify as an investment company in order to obtain relief for the expenses of managing its investments.
And abolish indexation on capital profits is suggested because "relief has diminishing significance in the current stable macroeconomic climate".
Responses to the proposals are required by 3 November this year.
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October