Family-run businesses have been spared, for this year at least, new laws that affect the way profits are distributed.
The Chancellor has decided to postpone the introduction of the new rules, aimed at preventing husband-and-wife firms from splitting the income earned by the business in order to reduce their tax bills, until next year.
As well as delaying the legislation, the Treasury also indicated that it would use a further period of consultation to make sure the new law was clear and workable.
A spokesman for the Professional Contractors’ Group said: “We congratulate Mr Darling on seeing sense over this ill thought-out proposal.”
Date:13 March 2008
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