The system of capital gains tax (CGT) for individuals and trustees changed radically from 6 April 2008. The changes included the abolition of taper relief and indexation allowance and the introduction of a single rate of CGT of 18%.

In response to pressure from the business community the Chancellor introduced a new ‘Entrepreneurs’ Relief’ which has the effect that the first £1m of gains qualifying for relief will be charged at an effective rate of 10%.
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Following changes made to the Sex Discrimination Act and to the Maternity and Parental Leave Regulations, the law on contractual terms of employment during Additional Maternity Leave (AML) changed in respect of women whose babies were due on or after 5 October 2008. The date the baby is due, as shown on the MATB1 certificate (provided by the midwife or doctor at around 20 weeks into the pregnancy) is the relevant date and not the date the baby is actually born.
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Further details have been provided on the changes to the capital allowance treatment of cars.  The changes will have effect from 1 April 2009 for corporation tax purposes and 6 April 2009 for income tax. The special rules that restrict the amount of capital allowances for cars costing more than £12,000 will be abolished.

1. Expenditure on cars with CO2 emissions of 160gm/km or below will be allocated to the plant and machinery ‘pool’ (ie will obtain 20% writing down allowances (WDA)). 

2. Expenditure on cars with CO2 emissions above 160gm/km will be allocated to the ‘special rate pool’ (ie will obtain 10% WDA).

3.Cars that have an element of non-business use will continue to be dealt with in a single asset pool to enable the private use adjustment to be made, but for expenditure incurred from April 2009 onwards the rate of WDA will be determined by the car’s CO2 emissions.
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Are you planning a party for your staff? Make sure you are clear on the tax implications.

The good news is that, unlike entertaining customers, employee entertaining costs are generally allowable against the profits of the business.

What about the employees themselves? Is it a perk of their jobs and will they be subject to tax?
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The main rate of corporation tax which applies to companies with profits of more than £1.5 million fell to 28% from 30% from 1 April 2008.


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