Employment
Benefit rates Statutory maternity, paternity and adoption pay and statutory sick pay will be increased from last year’s rates on 6th April 2008.

Changes to redundancy payments were made on 1st February 2008 when the statutory maximum for a week’s pay was increased from £310 to £330.

 

Information and consultation for employees From 6th April the Information and Consultation of Employees Regulations will be expanded to cover organisations with 50 or more employees. The employer must make arrangements to consult employees on a regular basis about issues of concern to the business, if at least 10% of the employees (subject to a minimum of 15) make a formal request for consultation. Guidance on these regulations is available on the Acas website at www.acas.org.uk and on the Department for Business Enterprise and Regulatory Reform website at www.berr.gov.uk, see the section on information and consultation, under employment policy.

 

Energy Performance Certificates (EPCs) and Home Information Packs (HIPs) The Energy Performance Certificate provides an official energy efficiency rating for buildings. They are a key component of the Home Information Packs which have been required in England and Wales for all existing houses put on the market since 14th December 2007 and which will be required for all new build houses put on the market from 6th April 2008.

 

Energy Performance Certificates will be required in England and Wales From 6th April For the construction of all dwellings and for other buildings, with a floor area greater than 10,000sq.m., when they are built, sold or let. From 1st July For the construction, sale or rent of non-domestic buildings with a floor area between 2,500 and 10,000sq.m. From 1st October For the construction, sale or rent of smaller non-domestic buildings

Scotland and Northern Ireland are not implementing HIPs but EPCs have been required for new buildings in Scotland from May 2007 and a programme to introduce EPCs in Northern Ireland will be introduced form June–December 2008.

 

The Code for Sustainable Homes

From 1st May 2008 new homes in England must be rated against this Code and a sustainability certificate will need to be included in the Home Information Pack. The Code for Sustainable Homes measures nine categories of sustainable design, homes which exceed the sustainable standard in the existing Building Regulations will be awarded up to six stars. Where a home has not been assessed against the Code a nil-rated certificate must be produced. Further information on the Code and its implementation can be found on the Department for Communities and Local Government website at www.communities.gov.uk/thecode

 

In England it will be a legal requirement to produce a Site Waste Management Plan for construction projects over the value of £300,000 from 6th April 2008. Local authorities and the Environment Agency will be able to impose penalties for non compliance. FMB Information Sheet 4 /07/01 provides further information, see “Publications” at www.fmb.org.uk

 

Waste disposal and Environmental Permits

In the past authorised waste disposal sites had either a waste management license or a Pollution Prevention and Control (PPC) permit. From 6th April 2008 these will be replaced with Environmental Permits, there will be no impact on existing permit and license holders.

 

2007 From 6th April a new offence of corporate manslaughter will apply in England, Wales and Northern Ireland, in Scotland it will be called corporate homicide. The Act will create a new offence by which a corporation or limited company can be prosecuted for involuntary manslaughter committed in the course of its operations. Companies should review their existing policies and procedures to ensure that they have adequate protection under the new legislation. FMB Information Sheet 5/07/01 provides further information, see “Publications” at www.fmb.org.uk

 

The Mayor of London’s planning powers

Ken Livingstone will have the power to overturn some local authority planning decisions in London from 6th April 2008, under the Mayor of London Order. For further information see under planning on the Government Office for London website at www.gos.gov.uk/gol

 

The Standard Planning Application Form (1APP) will replace all existing local planning authority application forms in England from 6th April 2008. The form will be available online via the Planning Portal as well as in paper format from local authorities. For further information see the Planning Portal website at www.planningportal.gov.uk, contact the Planning Portal service desk on 0117 372 8200 or email support@planningportal.gsi.gov.uk

 

Taxation

Changes to taxation rates Income tax The basic rate of income tax will be cut from 22% to 20%. The 10% starting tax rate for low earners will be abolished. The top rate of income tax stays at 40%. Corporation tax The main corporation tax rate is to be cut from 30% to 28%. The small companies' rate of corporation tax will increase from 20% to 21% in 2008 and from 21% to 22% in 2009.
Alistair Darling announced changes to rates for the new tax year starting on 6th April 2008.

 

Taper relief and indexation allowance on Capital Gains Tax will end from April 2008 and there will be a single rate of 18%. The government is offering entrepreneurs’ relief for people selling businesses and large shareholdings where the first £1m will be taxed at 10%. To qualify you must own the business or at least 5% of its shares.

 

The Chancellor is expected to use the budget to introduce new rules on income shifting unless he can be persuaded to modify this policy by interested business groups. Where individuals transfer part of their income, (in the form of dividends or partnership profits), to another family member who pays tax at a lower rate, then they will have to be able to justify the amount of income paid to the family member.

 

From 1 January 2008, renovations and alterations to residential properties that have been empty for at least two years will be eligible for a reduced VAT rate of 5%. Empty property rates From 1 April 2008 empty office and retail premises will continue to enjoy a rate free period for three months, empty industrial buildings will have a rate free period of six months. After this the full business rate will apply to all empty properties.