The cost of extended warranties could increase if Chancellor Gordon Brown forces electrical retailers to pay tax on insurance policies.
It is claimed that retailers have made huge profits on legal ...
The cost of extended warranties could increase if Chancellor Gordon Brown forces electrical retailers to pay tax on insurance policies.
It is claimed that retailers have made huge profits on legal tax avoidance on the sale of extended warranties.
If Brown closes the loophole - as signalled in the pre-budget speech - experts predict high street retailers could lose hundreds of millions of pounds in profits.
The legislation is proposed to take effect for accounting periods beginning on or after 27 November 2002.
A Dixons Group spokeswoman said: "While it is not possible to comment fully until the legislation is in its final form, on the basis of the draft legislation issued yesterday, it is estimated that this would increase the group's tax charge by an amount in the region of £20m per annum."
