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OTHER MEASURES ANNOUNCED

Some of the other measures announced include:

GIFTS TO CHARITIES

In addition to the measures announced in November, further changes were announced to modernise the tax system and boost charitable giving. Under measures announced today:

bullet the new tax relief for gifts of shares to charities will cover a wider range of shares and securities than previously announced,
bullet non-resident individuals and companies can make Gift Aid donations,
bullet VAT zero rating has been broadened to include the sale or hire of donated goods to people who are disabled or on means tested benefits, and
bullet the existing VAT exemption for fund-raising events has been widened.

CONSTRUCTION INDUSTRY SCHEME

A package of measures has been announced. The rate of tax deducted from payments under the scheme will fall from 23 per cent to 18 per cent with effect from 6 April 2000. The volume of paperwork that is currently exchanged between contractors and subcontractors will reduce. It will be easier for companies to qualify for a CIS5 certificate following the reduction of the turnover threshold.

CORPORATE VENTURING SCHEME

Further improvements have been made to the Corporate Venturing Scheme. For a small company to qualify under the scheme the percentage of its ordinary share capital to be held by individuals has reduced from 30 per cent to 20 per cent. Only investments in unquoted companies can qualify. Relief will not be withdrawn if the company becomes quoted within the three-year qualification period, providing that no such arrangements were in place or planned when the shares were issued.

ENCOURAGING EMPLOYERS TO PROVIDE CHILDCARE

Childcare provision by employers, including places in commercial nurseries or with child minders, and workplace nurseries or childcare vouchers will be excluded from the extended Class 1A NIC charge to be introduced from April 2000.

RENT FACTORING

Large companies use rent factoring schemes to raise finance. Payments for the sale of rents and premiums for granting leases received under such schemes entered into from 21 March 2000 will be taxed as income receipts under Schedule A. The Inland Revenue considers that such receipts are already taxable under Schedule A but the position has been clarified.

AND FINALLY....

Don't forget to check the Tax Calendar 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.

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