Tax Issues Will Play Big Part in Tuesday's UK Budget

Andrew Mair, Tax-news.com

20 March 2000

On Tuesday UK Chancellor Gordon Brown will announce what is likely to be his last budget before the next general election in Britain. High on his agenda will financing the delivery of promised tax cuts and making more funding available to meet Blair Government's abitious targets for education and health services.
Apart from income tax cuts, there are a number of other issues on the UK's tax agenda that Gordon Brown is expected to respond to in the budget, including:

• the reduction of capital gains tax to just 10%, which has already been announced five years ahead of schedule.
• calls from the City of London for the abolition of the 0.5% stamp duty on share trading to make London markets more competive in Europe.
• mounting pressure from the UK betting industry to reduce the 9% betting levy to stem the flow of UK internet gambling operations moving offshore in order to compet with international operations.
• new measures to regulate the taxation of e-commerce, primarily focusing on tightening the net for collection of VAT and customs duty on digital goods and overseas e-commerce purchase.
• pressure from the dot.com sector to reduce the 12.2% national insurance tax levied on share option schemes which are an important incentive for recruiting talented staff in a competitive employment market.

Related Article: FT special budget section: http://www.ft.com/budget/

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