Companies Act 2006 – Implementation – Secretary changes

"Income shifting" legislation delayed As mentioned in an earlier news item the Government was proposing new legislation to prevent a tax advantage being gained through income shifting.

The Government has considered the responses received to the recent consultation and believes that a further period of consultation will ensure that legislation in this area provides clarity and certainty for businesses and their advisers.

The Government now intends to introduce legislation through the Finance Bill 2009 and will not enact legislation effective from 6 April 2008 as previously envisaged.
Experts had repeatedly criticised the legislation calling it unworkable, badly drafted, and impossible to put into practice. We will keep you informed of any new proposals when they are released.