Archive for October, 2007
Wednesday, October 10th, 2007
Chancellor of the exchequer Alistair Darling has elaborated on the inheritance tax (IHT) policy announced in yesterday’s pre-Budget report.
Speaking on BBC radio 4′s ‘Today’ show, Mr Darling said that he believed it was right for couples to be able to benefit from one another’s allowances so that in the event of someone’s death, the widower or widow can use both allowances and reduce the amount of tax would otherwise have to pay.
The chancellor added that the Conservative policy regarding IHT – which would accrue funds from non-domiciled individuals – would be unable to raise the £3.5 billion that shadow chancellor George Osborne said it would.
"What we have tried to do on all taxes is to make sure they are fair and we have a balanced approach," he added.
In the pre-Budget report, Mr Darling announced the increase of the IHT threshold for couples to £600,000.
Posted in Inheritance Tax | No Comments »
Tuesday, October 9th, 2007
The pre-Budget report to be made by chancellor of the exchequer this afternoon is expected to include big increases in thresholds for inheritance tax (IHT), it has been reported.
Alistair Darling will also address the issue of non-domiciled businessmen and private equity bosses who live abroad paying little in the way of taxes, according to the Scotsman.
Edinburgh South West’s MP will also state that Her Majesty’s Revenue and Customs will examine the way in which small family businesses disseminate profits among members of the family to avoid paying taxes, the newspaper states.
Increases in IHT boundaries and a crackdown on non domiciled individuals may be a response to shadow chancellor George Osborne’s pledge at the start of this month that a Conservative government would raise the threshold to £1 million, reports the publication.
The current threshold for IHT stands at £300,000 and in his last Budget as chancellor Gordon Brown advised that the it will rise to £350,000 by 2010.
Posted in Inheritance Tax | No Comments »
Monday, October 8th, 2007
A West Lothian woman has attacked new legislation regarding the licensing of airguns, it has been reported.
Jacqueline Jack has stated that changes in the law that came into effect on October 1st do not go far enough and they would not have prevented the death of her brother, who was killed by an airgun last year, the Scotsman reports.
The new legislation brought in by the Scottish parliament raises the minimum age to purchase the firearms to 18 as well as requiring retailers of airguns to be registered firearms dealers and to take the name and address of buyers.
Ms Jack told the newspaper that the man who killed her brother was in his forties and as such the change in the law would not have done anything to protect him – she also questioned the effectiveness of having sellers take the names and addresses of purchasers.
According to the publication, the Scottish National Party administration has called for firearm laws to be devolved to the Scottish parliament.
Under Scottish law, the minimum purchase age for crossbows is also 18, as part of the Custodial Sentences and Weapons Act.
Posted in New Legislation | No Comments »
Monday, October 8th, 2007
As rumours that the prime minister may call for an election in November this week, there is a possibility that the chancellor of the exchequer may publish the pre-Budget report and spending review in the same period.
Edinburgh-based life insurance and pension company AEGON has stated that it is possible that a large increase on the inheritance tax (IHT) nil rate band from £300,000 may be announced – but leaving the home outside the tax net.
Other possibilities include a change in the period for which IHT can apply to gifts from the current period of seven years to a decade and a reduction in the amount of time it takes for a non-domiciliary to be deemed to be UK domiciled and become liable to the tax on their worldwide assets
A possible reduction in the nil rate band, paired with taking the home outside the IHT net may also take place, according to the company.
In his last Budget as chancellor, Gordon Brown suggested that the IHT nil rate boundary should be raised to £350,000 by 2010.
Posted in Inheritance Tax | No Comments »
Thursday, October 4th, 2007
Justice secretary Kenny MacAskill has welcomed a paper’s proposals for increased payment to criminal lawyers in the early stages of cases, it has been reported.
The Scottish government states that Mr MacAskill welcomed the proposition for payment increases with the overall aim of saving money through the early resolution of cases, thus avoiding excessive and unnecessary work.
Mr MacAskill stated that Scotland’s criminal justice system is going through its largest reforms "in at least a generation" and the reforms will mean that fewer cases needlessly go to court and those that do are dealt with more efficiently.
"As part of that work, this government wants solicitors to be appropriately and fairly paid and wants public funds to be used to support an efficient and fair summary justice system," he added.
Mr MacAskill concluded that the proposals – made together with the Scottish Legal Aid Board (Slab) – were aimed to avoid wasted effort and expense as well as reducing pressure on victims and witnesses of crimes.
Proposals in the paper bolster the summary justice reforms set out in the Criminal Proceedings etc (Reform) (Scotland) Act 2007, reports the authority.
Slab is responsible for the management of legal aid – which allows people who could not otherwise be able to gain assistance – in Scotland.
Posted in Family Law | No Comments »
Wednesday, October 3rd, 2007
Financial service provider James Hay yesterday commented on shadow chancellor George Osborne’s announcement that a Conservative government would raise the inheritance tax (IHT) threshold to £1 million from its current position at £300,000.
Liz Henderson of James Hay’s technical unit stated that the IHT, a tax which generates "relatively small" revenues for the government. is subject to "most debate" among consumers.
Ms Henderson stated that along with the abolition of stamp duty, such changes would be welcomed by homeowners – and cost the government some £3.5 billion, according to the Conservatives – but the ways of making up lost revenues would "cause more controversy than IHT itself".
Plans to implement a flat-rate offshore domicile levy on anyone registered as domiciled overseas for tax purposes are "unlikely to be as clear-cut" as they sound, Mr Henderson asserted.
Some individuals may have "considerable wealth overseas" while others will be reluctant to register as non-domicile due to the limited amount of tax savings they may benefit from, Ms Henderson concluded.
In his last budget as chancellor, Gordon Brown pledged to raise the IHT threshold to £350,000 by 2010.
Posted in Inheritance Tax | No Comments »
Tuesday, October 2nd, 2007
New arrangements for establishing a power of attorney may involve an increased amount of bureaucracy but are generally "a good idea", an independent financial adviser (IFA) said today.
Bernard Hunte from IFA Bates Investment Services said that the new lasting power of attorney (LPA) is taking longer to set up than its predecessor – the enduring power of attorney (EPA) – did.
The process also involves a greater amount of paperwork due to the fact that the power is "split into two parts" – financial and welfare, he said.
He added that despite the increased amount of red tape, an LPA is intended to protect an individual if and when they start to lose their mental faculties.
Mr Hunte added that an IFA should not claim to be an expert on the technicalities of how LPAs are set up and as such it may be advisable for consumers to seek legal advice when constructing one.
The Mental Capacity Act became fully implemented on October 1st and replaces the EPA with the LPA.
Posted in New Legislation | No Comments »
Monday, October 1st, 2007
Changes in the way Scottish consumers receive legal services may take place following planned recommendations from the Law Society of Scotland, it has been reported.
Suggestions will be made by the Scottish solicitors’ governing body by the end of February, promised organisation president Richard Henderson.
Proposals will be made in response to pleas to overhaul the current system of legal advice provision in Scotland – the closed shop – which disallows businesses such as banks and supermarkets from offering such assistance to consumers, according to the Herald.
The recent event at the National Gallery called The Public Interest, Delivering Scottish Legal Services was acknowledged to be one of the most significant debates the law society has ever hosted, according to the publication.
According to the Scotsman, outcomes from the debate at the National Gallery are due to be published as part of a consultation paper that will be issued this month.
Posted in Legal Aid | No Comments »
