ROUND UP

Some of the other measures announced include:

COUNTERING AVOIDANCE IN THE PROVISION OF PERSONAL SERVICES

Legislation is to be introduced with effect from April 2000 to counter the use of an intermediary, such as a company or partnership, to disguise engagements with the essential characteristics of employment, and thereby pay reduced tax and national insurance.

COURT COMMON INVESTMENT FUNDS

With effect from 6 April 1999, Court Common Investment Funds (CCIFs) will be treated for tax purposes as if they were authorized unit trusts. The change ensures that UK dividend income received by CCIFs does not incur an extra tax charge before being paid to investors.

TAXATION OF FREE STANDING AVC ANNUITY PAYMENTS

It was announced that pensions paid by Free Standing Additional Voluntary Contribution (FSAVC) schemes are taxable in full in the same way as pensions paid by other types of pension scheme.

The new rules correct a flaw in the existing legislation and will be treated as if they had always applied.

INDIVIDUAL LEARNING ACCOUNTS (ILAs)

The Government is launching ILAs in order to promote life-long learning and encourage people to take responsibility for their own training and development. The first starter accounts will open in 1999/2000 and for the first one million accounts the Government will provide £150 for spending on education and training when the holder commits a minimum of £25. A national framework will be put in place so that ILAs are available to everyone.

VOCATIONAL TRAINING RELIEF

Higher rate tax relief will no longer be available for payments for vocational training on or after 6 April 1999. Basic rate relief will continue. Vocational training relief will be completely abolished in 2000/2001 when the national framework for ILAs is launched.

NEW VAT EXEMPTION

A new exemption from VAT is to be introduced in the Autumn of 1999 applying to membership subscriptions for non-profit making bodies of a political, religious, patriotic, philosophical or philanthropic nature. Bringing these bodies into the VAT system will permit them to reclaim VAT incurred on the cost of distributing publications to their members.

AND FINALLY...

Don't forget to check the Tax Calendar on page 16 for a selection of filing, issuing and payments deadlines. Remember under self-assessment, late payment or filing can cost you dearly in penalties, surcharges and interest.