Spreading The Burden Of UITF 40

Government concedes need for spreading relief but inequalities remain In response to pressure from various consultative bodies with whom we have been actively involved, the Chancellor has accepted the need to introduce a ‘spreading relief ’ to help firms combat the negative tax effects resulting from the change in accounting practice under UITF 40.

Prior to the concessions announced in the Chancellor’s Pre Budget Report, all affected businesses would have been obliged to pay the advanced tax charge in a single installment. Clearly, this could have been very damaging for some firms bearing in mind that no additional cash would actually have been generated in order to pay the advanced tax.