Tax centre
Pre-Budget Report 2007
Anti-avoidance measures
Holiday pay national insurance contribution exemption
The NIC exemption for holiday pay that is paid through third parties will be removed for all sectors outside the construction industry with effect from 30 October 2007. The exemption will remain for the construction industry for another five years to give it time to adjust.
Other anti-avoidance provisions
Legislation will be introduced to counter a range of different tax avoidance schemes, including individuals who pay all the interest in advance on certain business loans to accelerate their tax relief, the sale and leaseback of plant and machinery, and companies that in effect convert interest into non-taxable income.
The Government will also be consulting on principles-based responses to tax avoidance involving income stripping and disguised interest with the aim of improving clarity and certainty.