Transferring property for shares was not “raising money” for the purposes of the Business Expansion Scheme, the High Court has ruled. Although this Scheme was abolished in 1994, this provision has been translated into the current rules for the replacement Enterprise Investment Scheme, and so remains relevant. The company transferred two houses to a qualifying...Read More

The government announced in 2000 that 400 more “fraud-busters” are to be employed to tackle the hidden economy. These new investigators will be targeting employers to check on whether they are meeting their tax and VAT liabilities, and whether they are helping employees cheat the benefits system. This step is one of several intended to...Read More

Inland Revenue has started putting guidance notes on the Internet which is not available on paper. In particular, some guidance on the new regulations on personal service companies is only available on the Internet at www.inlandrevenue.gov.uk/ir35/index.htm. [2000]Read More

Inland Revenue is launching its Payroll Standard in June 2000 to ensure that payroll software meets a recognised standard. Only small and new businesses may use this new package of help, which includes testing packages. Inland Revenue has published a full list of conditions which must be met to ensure compliance. Further details can be...Read More

Two tax statutory instruments have been wrongly numbered. In 2000, Statutory Instruments 757 and 760 should be renumbered 758 and 761 respectively. These regulations disregard vouchers and other benefits now within the scope of class 1 national insurance from determining income for the purposes of calculating the amount of contracted out benefits to an occupational...Read More

The government has announced in 2000 that it will not make political donations eligible for tax relief. This was one of the few proposals from the Neill committee on standards in public life which the government has rejected. The Chancellor said it was not a priority to provide another £5 million funding to political parties....Read More

The death of mortgage interest relief at source (MIRAS) in 2000, provides an interesting history of how tax policy has adopted the changing values and perceptions of society. From the beginning of the 20th century, when home ownership was rare, property owners were subject to income tax under Schedule A for the benefit of the...Read More

The audit threshold is to be raised from £350,000 to £1 million for accounting periods ending after 31 July 2000. The government is considering a further increase to an amount as high as £4.8 million in 2001. This decision will be made as part of  a fundamental review of company law. Until 11 August 1994,...Read More

About 25% of FT-SE 100 directors have a finance background, compared with 10% ten years ago. No other profession is so well represented among these directors. [2000]Read More

A tax officer has been prosecuted for insider dealing. Lawrence Henry Champion gained price sensitive information through his work at Inland Revenue and used it to his advantage in 1997 and 1998. This is one of the few successful prosecutions that have been brought for insider dealing, which is notoriously difficult to prove. [2000Read More