Business and Other Briefings

FSCS: A recent change in tax law has clarified that, where a compensation payment from FSCS includes an element representing interest and that compensation is paid after 6 October 2008, the interest element of the compensation is treated as taxable income.
 
The FSCS plans to provide the relevant figures to customers of the building society or banks that have recently failed before the end of September 2009.  Icesave customers who pay tax on the interest they earn on their account will shortly receive a letter containing the above information. As ISAs are tax free, consumers who have received compensation for an ISA will not be affected.
Press release ~ HMRC clarification ~ FSCS
 
BIS: Business Secretary Peter Mandelson has announced changes that will mean more firms can now purchase top-up cover as part of the Government's trade credit insurance scheme. Since 1 May 2009, companies who have had their credit insurance cover reduced have been able to purchase 6 months top-up cover under the £5bn Government Scheme.
 
In response to requests from business, from last week eligibility for the scheme will be backdated to include suppliers who had their cover reduced since 1 October last year.  Previously, the Scheme was available to companies who had cover reduced since April this year.
 
In addition, credit insurance provider HCC will now join the three largest credit insurers (Euler Hermes, Atradius and Coface) as a provider of the Government Scheme, which runs until 31 December 2009 andallows suppliers to purchase Government-backed insurance to either restore cover to the original level or double the amount they are able to obtain from the private sector up to the value of £1m (whichever is the lower).
Press release ~ Trade credit insurance top-up scheme ~ Association of British Insurers Statement of Principles
 
HMRCRevenue & Customs Brief 33/09
This brief explains HMRC's revised interpretation of 'occupation' for the purposes of the option to tax anti-avoidance legislation. This follows the release of the judgment in Newnham College.
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