Miscellaneous

Child Trust Fund
A contribution of £100 every year will be made to the Child Trust Fund accounts of all disabled children, with severely disabled children receiving £200 a year. Payments will start in April 2010 for children receiving disability living allowance in 2009/10.

Tax avoidance
The Government has announced action to counter a number of tax avoidance schemes including legislation to:

• Clarify the rules of the corporate intangible fixed asset regime by confirming that goodwill is treated as intended, and includes internally generated goodwill.
• Tackle tax avoidance where an employee or company director is provided with accommodation through the payment of a lease premium rather than a full market rent for the use of the property.
• Stop individuals obtaining relief for interest payments on loans to invest in partnerships or small companies where the borrower is guaranteed to make a profit as a result of the availability of the relief.
• Prevent taxpayers from avoiding tax by transferring rights to receive future income streams.

A new disclosure opportunity for offshore account holders will run until March 2010 giving them the opportunity to disclose any unpaid tax.

Think ahead The minimum age at which you can draw benefits from a pension arrangement will generally rise from 50 to 55 from 6 April 2010.

Publishing tax defaulters’ names
Taxpayers will have their names and details of unpaid tax, interest and penalties published for one year on HMRC’s website if they deliberately understate tax due, or overstate claims or losses, by more than £25,000, or fail to notify HMRC of their tax liability leading to a loss of tax of over £25,000, or commit certain VAT or excise wrongdoings.

Payment of tax
Some time after April 2011, taxpayers will be allowed to make voluntary managed payment plans which will permit them to spread their income tax or corporation tax payments equally over a period straddling the normal due dates without accruing interest and penalties. Small debts will be collectible through PAYE, probably from April 2012.

Businesses will also be required to supply contact details for individuals who are in debt to HMRC and with whom HMRC has lost contact. The penalty regime for late filing of tax returns and late payment of tax has been revised. Penalties will be introduced for employers who are late in making monthly PAYE and NICs payments and paying corporation tax. Interest due on under or over paid tax and refunds for most taxes will be harmonised.

Vehicle scrappage scheme
Dealers participating in the temporary scheme will offer a £2,000 discount to consumers who buy a new vehicle to replace one that is over ten years old and that they have owned for more than 12 months.

Capital disregard for pension credit
From November 2009, the capital disregard for pension credit and pensioner related Housing and Council Tax benefit will increase from £6,000 to £10,000.