Cost of FIDs reaches pounds 120m
Friday 18 July 1997
Since the Budget a fortnight ago, nine companies have announced they are either paying FIDs for the first time or are extending their FID schemes. Already the cost exceeds pounds 120m to the Inland Revenue in uncollected taxes, suggesting its estimates that it will lose just pounds 200m over the two-year loophole period are far too low.
Companies affected by the abolition, which will mean double taxation of overseas earnings, again called for the Government to scrap corporate taxes on dividends. A CBI committee, which met with the Government a week ago, was told there would be a shift in the proposals but companies "should stop complaining to the media about the implications," said an involved party.
Tomkins, the guns to buns conglomerate, yesterday revealed it may pay its entire dividend as a FID following the Budget proposals. Ian Duncan, finance director, said the move could save the company at least pounds 10m in extra taxation. "If this two-year window is going to exist, then clearly we should maximise our use of FIDs," he said.
Burmah Castrol, the oil giant, said yesterday it would extend its FID payouts if the Government did not amend Budget proposals detailed in the forthcoming Finance Bill. "Abolishing FIDs will raise our taxes by pounds 6m a year," said a spokesman.
Both Grand Metropolitan and Scapa, the UK chemicals group, announced yesterday they would pay FIDs for the first time. GrandMet said the move would save around pounds 33m a year. On Wednesday Siebe and drugs group Medeva joined the list.
UK companies which have extensive overseas earnings have been lobbying for a change in the proposals, with some threatening to leave the UK and others pleading they would become more attractive to foreign predators. Most, like Tomkin's Mr Duncan, believe the best solution is an abolition of ACT, the dividend tax, and a change to an instalment system of paying mainstream tax.
- 1 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 Floyd Mayweather vs Manny Pacquiao live: Mayweather puts on defensive masterclass to win by unanimous decision
- 4 Floyd Mayweather's mouthguard costs $25,000 - enough to fly to Las Vegas and back 18 times
- 5 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Which country would be hardest to invade?
Morgan Freeman on the riot-focused coverage of the Baltimore protests: 'F**k the media'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
The man who filmed the Freddie Gray video has been arrested at gunpoint
Nepal earthquake: Many survivors receiving no help despite relief effort
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
Indonesia executions live: 'Hysterical' families heard prisoners being shot dead by firing squad
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
EU exit would hit UK economy much harder than neighbouring countries, study finds
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...