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11 October 2007
Issue: 7292 / Categories: Legal News , Tax
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Darling sets out tax deals and budget cuts

News

As well as doubling the inheritance tax threshold to £600,000 and introducing non-domicile taxes, the chancellor, Alistair Darling, announced that capital gains tax is to be increased from a rate of 10% to 18% in his pre-Budget report (PBR).

Grant Thornton corporate tax partner Stephen Quest says the increase will be a “major disincentive” for private equity firms to take risks or even to remain in the UK.

John Walker, Federation of Small Businesses policy chairman, calls the PBR “disappointing” and likely to “increase the financial burdens on small businesses at a time when they are contributing more than ever to the UK economy”.

The construction industry also loses out in the PBR by the withdrawal of the national insurance contribution exemption relating to holiday pay for employees, says Grant Thornton construction industry expert Kathryn Hiddleston.

“The net effect of today’s change means the industry, which already operates under very tight margins, will have to find up to a further £150m per year,” she says. The construction industry has until 30 October 2012 to change its systems and procedures.

The legal aid budget is to be cut by one-tenth from its current £2bn under plans outlined in the 2007 Comprehensive Spending Review. JUSTICE director Roger Smith says: “Cuts of this magnitude are unachievable without massive reductions of service.”

Issue: 7292 / Categories: Legal News , Tax
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MOVERS & SHAKERS

NLJ Career Profile: Nikki Bowker, Devonshires

NLJ Career Profile: Nikki Bowker, Devonshires

Nikki Bowker, head of litigation and dispute resolution at Devonshires, on career resilience, diversity in law and channelling Elle Woods when the pressure is on

Ellisons—Sarah Osborne

Ellisons—Sarah Osborne

Leasehold enfranchisement specialist joins residential property team

DWF—Chris Air

DWF—Chris Air

Firm strengthens commercial team in Manchester with partner appointment

NEWS
Contract damages are usually assessed at the date of breach—but not always. Writing in NLJ this week, Ian Gascoigne, knowledge lawyer at LexisNexis, examines the growing body of cases where courts have allowed later events to reshape compensation
The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts
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