With the Autumn Statement just around the corner, we asked some of our tax partners and senior tax managers which area of tax legislation they would change and why, if they were given the opportunity. Here we have a look at what Scott Burkinshaw and Rachael Dronfield’s thoughts were.
Scott Burkinshaw
Tax Partner
“I would reintroduce the availability of tax relief for expenditure on industrial buildings. This was abolished a while ago resulting in manufacturing businesses acquiring new factories only being able to claim tax relief on the cost of plant, fixtures and other equipment but not the cost of the building itself. At a time when we are seeking to encourage investment in such sectors to help boost innovation and exports, offering extra tax relief on industrial buildings would allow businesses to pay less tax and keep more cash to reinvest in activities that create jobs and growth for the economy”
Rachael Dronfield
Private Client Director
“I would simplify, if not abolish, the specific income tax rule regarding ‘settlor-interested’ trusts. Trusts continue to play a valuable role in succession planning and asset protection and I do not expect this to diminish in the future.
A settlor interested trust is one where the person who adds funds to the trust (i.e. the Settlor) can also benefit from the trust, in which case the settlor is liable to pay the tax on trust income. The rules are very complicated and time consuming for both the settlor and HM Revenue & Customs, and are often misunderstood or just overlooked. Given that the top rate of income tax for trusts is equivalent to the highest rate of income tax for individuals, it is time to make things simpler and more cost effective, as this should be possible without any loss to the Exchequer.”
More thoughts will follow from other members of our senior tax team.
Scott Burkinshaw
Scott is Tax Partner at Shorts, specialising in providing strategic corporate and personal tax advice.
View my articlesTags: Private Client, Business Taxes
