Government consultation

Adding to the array of consultation and reviews underway, the Government announced a review aimed at simplifying corporation tax obligations and procedures for smaller companies with a turnover of less than £750,000 and fewer than 10 employees.

In the same area, a consultation on the Enterprise Investment Scheme (EIS) was launched to examine how it may be made more accessible to investors and companies seeking finance, accompanied by an increase in the annual investor limit in the EIS from £400,000 to £500,000 – subject to approval from the European Commission.

Discussions continue on the proposed modernisation of the offshore funds rules. Revised legislation is anticipated in Finance Bill 2009 (FB 2009).

Contrary to expectations there is no more detail regarding the consultation on foreign profits included in the Budget, however this is expected before summer 2008.