Other measures announced
Denying tax relief to bribes
With effect from 1 April 2002 a business cannot obtain a tax deduction for expenditure incurred on
a bribe or similar payment made overseas that would be a criminal payment if it were made in the
UK.
Employer subsidised buses
With effect from 6 April 2002 the exemption relating to subsidising public bus services that was
introduced in 1999 has been extended so that there will be no tax or NIC charge where employees
are carried free or at a reduced fare.
Support for community amateur sports clubs (CASCs)
A range of tax reliefs for qualifying CASCs have been introduced with effect from 1 April 2002. Any
sports clubs that are open to the whole community, organised on an amateur basis and providing
facilities for, and promoting participation in one or more eligible sports will qualify. Incentives are also
being provided for individuals and businesses that support their local CASCs through donations
made on or after 6 April 2002.
Interest paid on asset linked securities
Companies will be able to claim relief for interest paid on or after 17 April 2002 on commercial
securities where the redemption amount is linked to the value of particular assets. This will bring
these securities into line with most other commercial instruments. In cases where the interest
payment is considered to be excessive, the Taxes Acts treat the excessive interest as being a
distribution of profit. This test will now be applied by reference to the amount invested, and not to
the amount guaranteed to be repaid on the security, which could fall. If the interest payment is not
excessive using the revised test, then the company will be able to treat the security like a normal
loan.
Modernising road haulage taxation
The Government has today announced that it aims to introduce a distance-based road-user charge
for lorries by 2005 or 2006. The intention is to make foreign lorry operators pay towards the costs
they impose on the UK. As the UK haulage industry already contributes towards road costs, the
Government will be introducing offsetting tax cuts at the same time.
Landfill tax
The rate of landfill tax increased by £1 per tonne with effect from 1 April 2002. The Government
anticipates that the rate of landfill tax will need to increase significantly in the medium term as part
of the mix of future policy measures on waste.
Mutual assistance in recovery of debts
If an individual or a business has a tax debt outstanding within one European Union Member State,
and recovery of that debt proves to be unsuccessful, that country can request another Member
State to attempt recovery where it appears that the debtor now resides or has assets in the other
State. This arrangement already exists for indirect taxes. It is being extended to cover direct taxes
(income tax, corporation tax, capital gains tax and petroleum revenue tax) and insurance premium
taxes with effect from the date of Royal Assent to the 2002 Finance Bill.
and finally...
Don't forget to check the tax calendar for a selection of filing, issuing, and payments
deadlines. Remember, under self-assessment late payment or filing can cost you dearly in
penalties, surcharges and interest.
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