9 March 1999 Budget
Miscellaneous and other taxes
The standard rate of insurance premium tax (IPT) will be increased from 4% to 5% from 1 July 1999. IPT applies to most general insurance eg, motor and household.
Businesses and individual taxpayers will have the option of sending tax information, such as VAT and income tax returns, via the internet.
The government will not be proceeding with a general anti-avoidance rule (GAAR) or with a mini-GAAR tor VAT on construction services for the present.
Legislation will be introduced in the Finance Bill 2000 to deal with disguised employment arrangements where intermediary vehicles such as companies and partnerships are used to avoid tax and national insurance contributions.
From 6 April 1999, the maternity allowance will be extended to all women earning less than the NIC lower earnings limit if they earn at least £30 per week, to be paid at 90% of previous earnings. From 2000/01, self-employed women will become entitled to the full rate of maternity allowance.
The basic working families tax credit will be increased by £2.50 from October 1999, and the tax credit for children under 11 years will be increased by £4.70.