David Smith
The man, the films, those blondes. Free DVD collection starting this Sunday
ALISTAIR DARLING will not make further significant concessions on either the taxation of “nondoms” or capital-gains tax (CGT), Whitehall sources say.
He is also set to press ahead with tax changes that leading accountants say will leave small businesses with a tax bill running into hundreds of millions and a huge increase in red tape.
The chancellor, despite proposing a lifetime “entrepreneurs’ relief” of £1m to soften the blow of the abolition of CGT taper relief and an increase in its minimum rate from 10% to 18%, has been under pressure to make further changes.
Business groups have also urged him to delay for a year the £30,000 annual levy on nondoms until disclosure and other issues are sorted out. But the new levy, which will apply to nondoms only after seven years in the UK, will go ahead.
The Treasury and Revenue & Customs are also taking a hard line on so-called income-shifting between husbands and wives. The measures, brought forward for consultation after the Revenue lost the £500,000 Arctic Systems case in the Lords, will raise £260m in its first year by clamping down on the way incomes and profits are allocated between husbands and wives within family businesses.
The Institute of Directors, in its budget submission published this week, will seek to delay the move. “The proposed legislation is wholly unsatisfactory,” it will say. “It will impose huge administrative burdens by requiring the application of an arm’s-length test that makes no sense in the context of family businesses.”
Read the training tips and advice that helped our London Triathletes
Times Online's new TV show helps you make the right decisions for your pet
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles

Overseas contacts and local business information

Find a course, arrange a game and save money
2007
£47,700
2007
£41,899
2008
£41,445
Great car insurance deals online
£25,510 – 32,000
Transport for London
London
£50k
NHS
Nationwide
£
£90,000 + PRP
Essex County Council
Essex
100K
Confidential
London
5% below developer pre-launch price!
Luxury Appts, beautiful gardens w/ Thames views
Great Investment, River Views
By Funway – Thailand
from £589pp
Christmas Cruises
From only £995pp
APTs East Coast now from only
£2425pp.
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Globrix Property Search - find property for sale and rent in the UK. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
"The measures, brought forward for consultation after the Revenue lost the £500,000 Arctic Systems case in the Lords, will raise £260m in its first year by clamping down on the way incomes and profits are allocated between husbands and wives within family businesses.". Apart from discrimination against married couples in this way being totally unfair and arbitrary, it is simply not true that £260m will be raised in the first year of any changes. People will find other ways of managing their family businesses, that is all. Supposing a husband and wife got divorced - but still lived together and shared dividends. What then? IR35 showed that stupid tax law does not raise revenue. This Government makes me sick!
Richard, Worcester, England
When I started my family business I knew little of CGT, NI, PAYE, VAT, benefits in kind, or any of the other statutory tools of financial extraction imposed on us. (is IST or 'income shifting tax' the next one?)
16 years later the two of us have personally generated an enterprise that has trained and employed over 40 people, unfailingly paid over hundreds of thousands of pounds in tax revenues every year and provided award winning services to an international clientele.
The well meant taper relief was the closet we got to a pat on the back.
The new proposals do not encourage us to make the extra effort required to convert a small time success in to a big time one, or to repeat the process should we ever sell up.
It seems that if pets look like their owners, then the country is looking like its Governors - unattractive.
Pete, London,
Is Darling so beholden to his trade union cronies that he insists on driving the country into a ruin reminiscent of pre-Thatcher UK once again? Anyone who thinks that highly capable people, with earnings to match, are obliged to stay here, especially in this day and age, is quite simply not fit for office.
James Smythe, London,
The really worrying thing is not the tax; it is the "huge increase in red tape".
The desire of civil servants to complicate systems to ensure their own employment and pensions throws so much sand into the gears that the whole machine will eventually seize up.
Peter, Oxford,
If these measures hasten Labour's demise, I am all for them.
Edwin, Bucharest,
I totally agree with abolition of CGT Taper Relief. As a normal person who likes to conduct their Tax Affairs in a straight forward manner without involving rip off accountantants who basically are just taking a little bit of cream for themselves. Is it not easier to work out the CGT yourself in this new simple manner. Revenue benefits with more income and so does the customer. As the saying goes K.I.S.S. (Keep It Simple Stupid)
K S, Liverpool,