HM Revenue & Customs (HMRC) has ruled that rebates received by customers will be considered as annual payments and as such will be taxable. HMRC will start collecting tax on rebates from April 6th however the tax will not be taken from ISA accounts.
Markets rallied initially on news that Cyprus had agreed a last minute bailout, but took a nosedive this afternoon with the FTSE closing down 14.38 points at 6,378.38, France’s CAC dropped just over 1% to close at 3,727.98 and the German DAX dropped 0.5% to 7,870.90.
Cyprus announced today that it has secured a €10 billion loan, averting the threat of a euro zone exit. In a deal that is backed by euro zone finance ministers, the loan avoids a financial collapse with a strict set of criteria that includes winding down the Popular Bank of Cyprus, which is mostly state owned.
Despite the threat of financial collapse in Cyprus, the FTSE spent most of the day in positive territory today as corporate news pushed stocks higher. Marks & Spencer, AstraZeneca and BP all traded up after encouraging market announcements.
Cyprus has been left scrambling for financial aid after Russian leaders declined to offer a financial lifeline. The country only has until Monday to raise the almost €6 billion demanded by the European Union, which will allow for loans worth €10 billion to be unlocked or face being denied emergency funds from the European Central Bank which could cause economic collapse in Cyprus.