It looks like Northern Rock is facing nationalisation!

It looks like Northern Rock, the failed British mortgage lender, is facing nationalisation and then a quick sale by the UK government. I have the gut feeling that Virgin Money and Olivant will not be able to borrow enough to finance the deal.
A deal has to be finalised by the middle of January.

Bank of England governor Mervyn King has made public his displeasure at the shareholders for making the rescue operation more difficult. Apparently, one
shareholder wants £4.10 a share for Northern Rock, if it goes for nationalisation.
This contrasts with the opposite view that the equity in Northern Rock has already been wiped out and so the realistic share price is zero.

If you have any CGT problems over your holding in Northern Rock, then you might need an accountant and a local one at that.

You will never beat Des Walker!!

This is what the Notts Forest fans used to sing when Des Walker was playing
for the club in its glory days. You could say the same applies to the
taxman or Her Majesty Revenue and Customs (HMRC). The Sunday Times reports that the Revenue is continuing its squeeze on
offshore accounts. What is so amazing is the tax recovered and a total of
£500m is expected to come in by the deadline of 26/11/07.

The Sunday Times notes that some 36,000 people will be formally investigated.
I bet they will need an accountant!!

Tax advice: Potential changes to the Annual Investment Allowance (AIA)

Roger Sherwood and Co, a firm of accountants, have highlighted to its customers changes that HMRC are proposing regarding how to write off purchases of plant and equipment for tax purposes.

As ever, here is another example of Gordon Brown hitting (small) businesses. Unless you look at the small print, the change would seem to encourage some firms to spend more on plant and equipment in order to achieve the tax savings - thereby potentially impacting their cashflow!

"Watch this space" is the advice of Roger Sherwood and Co, whilst the proposals go through a consultation period and may appear in next year's Budget.

Increased taxation means more work for accountants?

Does an increase in UK business taxes means more work for accountants? I suppose that
they hope so. The Institute of Directors is a bit concerned about the introduction of supplementary business rates and IoD secretary general Miles Templeman is worried that a small increase in normal business rates could lead to the closure of viable enterprises. This
follows the recent Lyons report on the issue. There is the feeling in political circles that
the burden on council tax payers has reached its maximum and now in is the time to
tax business enterprises.
Natalie Evans of the British Chambers of Commerce said business could be hit by an extra
tax of £1.5bn.
Changing the subject it is sad that ICI is being acquired by the Dutch group Akzo Nobel. It
reminds me of the title "Selling England by the Pound". The UK is up for sale and BAA has shown some of the pitfalls of foreign owners with 2006 investment being reduced so as
to pay off the borrowings. And letting foreign state owned enterprises buy up British
companies is insane. I know we let French state controlled group EDP buy up London Electricity
but letting Middle East and Chinese state agencies do the same is fraught with problems.
P&O provided significant support during the Falklands War but would it do the same
in future with its Dubai owners. I suppose the British government could nationalise its
way out of trouble.

Blogs: I have been looking at the competition

I suppose this blog is a bit monochrome without the use of a blizzard of nifty graphics.
I have been reading the US one TPM Muckraker and apparently it brings in quite a
bit of moolah through advertising. Ranting about Gordon Brown, Manchester United
and accountants is probably not much of an advertising proposition, so this blog is
adopting a kind of public service remit for the moment.
In his mission statement Gordon Brown says:

"Every child should have the best start in life, that everybody should have the chance of a job, that nobody should be brought up suffering in poverty. I would call them the beliefs that you associate with civilisation and dignity."
Youth unemployment is higher now in Britain than it was in 1997 despite Mr Brown's New Deal
programme. As for a good start in life don't go to some schools round here.

Stocks and shares

Dear Readers,
don't you hate the UK tax treatment of shares!! There is the stamp duty when you originally
buy, so no wonder people are spread betting and trading in contracts of difference to
avoid the tax. Then, if you are lucky enough to make a profit, you have to do pesky
calculations for taper relief. Or if your tax affairs are complex, you can get accountants
to do the calculations.
On the other hand the tax affairs of most people are simple but it just needs a bit of a
share portfolio, a second home or a buy-to-let property to make tax affairs complicated.
I suppose there could be a tax onslaught on second homes both in the UK and abroad.
Houses and flats are not very mobile and so are easy to tax. Stamp duty could rise to
continental levels. I suppose there could be conflicts between individual national
tax administrations trying to raise as much tax revenue as possible from
residential property. In Spain, different rates of capital gains tax are levied on property
sales depending on whether you are resident and non-resident and I am sure countries
will try and raise the tax take from foreigners (Brits).
If you do self-assessment, don't forget the July 31st deadline from HMRC if the 2005-06
tax return has not been sent in by January 31st. There will be a second automatic penalty
of £100.

Accountancy matters

Dear Readers, a survey of Robert Waters notes that there is a shortage of accounants.
Accountancy is seen as a general way into business so that banks and commercial companies
are having to take non-qualified staff for internal accounts. Small companies can use
the services of accountancy practices. For instance, in Kingswood, Bristol you could see what
Evans & Partners has to offer in terms of tax, accounts and payroll. It aims to take the
strain over red tape.
Bristol is also famous for its nightlife and was once considered the cultural capital of Wales
before the renaissance of Cardiff. The city is famous for the friendly rivalry between its
two clubs although a Gashead once told me that the main problem with Bristol was that there
were too many City fans on the council. Bristol Rovers will have to play a few games
in Cheltenham next season following their amazing promotion.