Budget 2004
Introduction
Personal
Income Tax
Tax Credits
National Insurance Contributions
Employees
Pensioners
Savings
Trusts
Capital Gains Tax
Inheritance
Tax
Stamp Duty / Stamp Duty Land
Tax
Corporation Tax
Business Tax
Value Added Tax
Other Measures
Tax
Tables
National Insurance
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Other
Measures
Gift Aid
You cannot claim income tax relief for a gift to charity if
you get something in return - that is not a gift. However, there
is an exception for payments which only give the right of entry
to premises, where the preservation of those premises is the
object of the charity. This was intended to cover annual subscriptions
to such bodies as the National Trust, but has been exploited
by some other organisations to gain tax relief for "day
membership" (i.e. entry fees at the gate). The rules are
to be tightened up after consultation with charities.
Merger of Revenue and Customs
The Chancellor announced, as expected, that the two main revenue-raising
departments will be merged. Mr Brown hopes for a large amount
of saving in public spending from this and other reforms to
the public sector, but the effect on taxpayers will be hard
to assess in advance. Dealing with a single authority may be
useful, but coping with a department which is going through
a reorganization may lead to delays and difficulties.
Anti-avoidance measures
The Chancellor declared his determination to reduce the benefit
of major tax avoidance schemes, either currently in existence
or in the future. There were measures to close specific loopholes
on VAT on buildings,financial products and finance leasing,
and new requirements for:
- law and accountancy firms who market avoidance schemes
to register such schemes with the Revenue;
- traders with over £10m of turnover to make certain
declarations to Customs about the use of VAT-avoidance schemes
which will be on a published register.
Simplified tax return
The Revenue carried out "pilot tests" of a shorter,
simplified tax return last year, and they will extend it this
year before rolling it out nationally in 2005. The shorter return
will only be available to people with relatively simple tax
affairs, and these will be selected from what was on the tax
return last year. If you are not selected, you cannot apply
to be part of the pilot!
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