New consultations 'to hit tax planning'

Consultations due to take place this summer could result in the government clamping down on tax planning strategies.

In his Budget speech earlier this week, chancellor Alistair Darling said discussions on the issue of how to tax returns generated from geared growth arrangements are due to take place in the coming months.

And such a move could have an adverse affect on the personal wealth of top executives.

’The options available for employers to deliver tax-efficient remuneration to their employees could narrow considerably in the future,’ said lead partner of the employment taxes group for Deloitte Matt Ellis.

He added the changes, which are expected to be introduced in April 2011 if they are approved, will make it ’harder and harder’ for employers to give their staff tax efficient remuneration arrangements.

High earners are already being affected in the form of a new 50 per cent tax on those receiving a salary of over £150,000, which comes into force next month.ADNFCR-2318-ID-19691287-ADNFCR