Chancellor Gordon Brown presented his tenth Pre-Budget Report last December. The accompanying press notices announced some important changes the more significant of which are as follows:
Individual Savings Accounts (ISAs) - will become a permanent feature of the savings landscape with simplification of the rules for mini and maxi ISAs. The government also intends to bring Personal Equity Plans within the ISA ‘umbrella’.
Alternatively Secured Pensions (ASPs) - changes will be made to the rules for ASPs. These pensions are designed only for those individuals who have a principled religious objection to annuitisation and the government felt that these types of pensions were being used by others to gain an advantage.
Construction Industry Scheme (CIS) - the government also confirmed that the new CIS becomes effective from 6 April 2007. More details of the scheme can be found here.
Managed Service Companies (MSCs) - new rules will be introduced from 6 April 2007 to ensure that those working in MSCs pay tax and NIC at the same level as other employees. Details of the proposed changes are also set out here.