MPs launch petition against income shifting proposals

Politicians are being encouraged to sign a new petition expressing concern about the government proposal to crack down on income shifting.

The Early Day Motion was started by Scottish Liberal Democrat MP Sir Robert Smith and states that is has been "standard practice" for married couples to own firms jointly for many years - an arrangement which many business people now face being "penalised" for.

Sir Robert is hoping that the motion, which has so far received eight signatures, will cause government tax officials to reassess their position on income shifting, Shout99.com reports.

Voicing his support for the petition, John Brazier of the Professional Contractors Group said: "This motion will send a clear signal to the government that it must rethink its proposals before they inflict disaster on family businesses throughout the UK."

Explaining the benefits of the current system, he added: "Family businesses are often owned jointly by family members, who then share any profits equally among themselves - it can often be tax-efficient to do so."

Sir Robert Smith entered parliament in 1997 and is the MP for Aberdeenshire West and Kincardine.

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