HC Deb 27 March 2003 vol 402 cc21-2WS
The Paymaster General (Dawn Primarolo)

Legislation will be introduced in the Finance Bill 2003 to take effect from today that will counter avoidance used by individuals attempting to exploit the relevant discounted securities (RDS) rules to create artificial income tax losses and to remove the potential for tax to distort investment decisions between investment in RDS and normal interest bearing securities. The measures will apply to transfers and redemptions of such securities on and after the date of this announcement.

Legislation will be introduced in the Finance Bill 2003 to take effect from 6 April to provide an income tax exemption for foster carers with gross receipts below a threshold. Carers with receipts above the exemption threshold will be able to choose between computing their profits in the normal way for self-employed persons or treating the amount by which their gross receipts exceed the threshold as their taxable profit.

A number of Treasury Orders are being made today that set out how the current figures for various tax thresholds and limits would change for 2003–04 if indexed in line with the retail price index for various tax thresholds and limits. There is a formal legislative requirement each year to make such a statement before the start of the tax year on April 6 regardless of the actual changes that are made; the actual levels of these amounts will be announced by the Chancellor on Budget day in the usual way.

The Orders made today are: The Income tax (Indexation) Order 2003 (SI 840), for the starting rate and basic rate limits. The Inheritance Tax (Indexation) Order 2003 (SI 841), for the inheritance tax threshold. The Capital Gains Tax (Annual Exempt Amount) Order 2003 (SI 842), for the capital gains tax annual exempt amount. The Retirement Benefit Schemes (Indexation of Earnings Cap) Order 2003 (SI 843), for the earnings cap for pensions schemes.

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