No need to panic over POAT proposals

The Government has rightly been accused of imposing a restrospective tax but lobbying may prevent the worst of the asset tax legislation from getting through

The new pre-owned assets tax (POAT) is rapidly becoming a part of the tax planner's vocabulary as the Finance Bill 2004 progresses inexorably through the Committee stage to royal assent. This is a new income tax charge aimed at reaching the parts the current inheritance tax (IHT) anti-avoidance legislation do not reach. Instead of amending the IHT anti-avoidance legislation, the Government has chosen to introduce this new income tax charge. The new tax applies from 6 April 2005 to UK resident individuals if they benefit from occupation, possession or use of assets they previously owned or...