Contact: Danielle Anthony
Deloitte
PR Manager
+ 44 (0) 207 303 3861

Bill Dodwell, Partner in Tax at Deloitte has commented,

"Business will be pleased with this Budget, which does not raise significant new tax or increase complexity.  There are some anti-avoidance measures, most of which close small loopholes in previous anti-avoidance legislation and which are budgeted to raise £135 million in 2006-07.  Some Stamp Duty Land Tax saving schemes are to be closed and the seeding relief (a relief on property transferred into a unit trust) is to be abolished, following its use in unintended circumstances.  The property industry had suspected this for some time.

"REITs will be introduced from 1 January 2007 and the conversion charge is 2% of the market value of the properties concerned.

"The Government has decided to take a minimalist approach on changes to loss relief, following the Marks & Spencer case.  The relief will apply only to losses incurred by EU/EEA subsidiaries of UK companies, where such losses cannot be used elsewhere.  Full details will only be available when draft clauses are released in the Finance Bill.  Companies will of course welcome the fact that there are no changes to the normal UK group relief rules.

"There is an emphasis on simplification, where HMRC aims to reduce the administrative burden by 10% over 5 years.  Online filing, both by companies and by individuals will be pushed forward and the long-awaited Carter Report is published today."

Notes to editors

Visit our dedicated Budget website www.ukbudget.co.uk.

About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and its people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT.

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The information contained in this press release is correct at the time of going to press.