UK tax

Finance Bill wash-up

The CIOT have produced an excellent listing of what’s in and what has been dropped in order to process the Finance Bill 2017 before parliament dissolves for the summer election. The table of changes is reproduced below. Although the clauses enacting MTD are in the “dropped list”, I see this as a temporary blip on the MTD horizon; no doubt these excluded items will be reintroduced as a No2 Bill after the election.

CIOT’s full article can be seen here https://www.tax.org.uk/media-centre/blog/media-and-politics/government-drop-majority-finance-bill

The full list of what is in and what is out of the Bill follows –

PART 1  
DIRECT TAXES  
CHAPTER 1  
CHARGE AND PRINCIPAL RATES  
Income tax charge and rates  
1 Income tax charge for tax year 2017-18 IN
2 Main rates of income tax for tax year 2017-18 IN
3 Default and savings rates of income tax for tax year 2017-18 IN
4 Starting rate limit for savings for tax year 2017-18 IN
5 Dividend nil rate for tax year 2018-19 etc OUT
6 Corporation tax charge for financial year 2018 IN
CHAPTER 2  
INCOME TAX  
Employment income  
7 Workers’ services provided to public sector through intermediaries  (+ schedule 1) IN
8 Optional remuneration arrangements (+ schedule 2) IN
9 Taxable benefits: time limit for making good OUT
10 Taxable benefits: ultra-low emission vehicles OUT
11 Taxable benefits: asset made available without transfer IN
12 Pensions advice OUT
13 Legal expenses etc OUT
14 Termination payments etc: amounts chargeable on employment income OUT
15 PAYE settlement agreements OUT
Pensions  
16 Money purchase annual allowance OUT
17 Overseas pensions (+ schedule 3) IN
18 Pensions: offshore transfers (+ schedule 4) IN
Trading and property businesses income  
19 Calculation of profits of trades and property businesses (+ schedule 5) OUT
20 Trading and property allowances (+ schedule 6) OUT
Investment income  
21 Deduction of income tax at source (+ schedule 7) IN
22 Life insurance policies: recalculating gains on part surrenders etc OUT
23 Personal portfolio bonds OUT
Reliefs relating to investments  
24 EIS and SEIS: the no pre-arranged exits requirement OUT
25 VCTs: follow-on funding OUT
26 VCTs: exchange of non-qualifying shares and securities OUT
27 Social investment tax relief  (+ schedule 8) OUT
28 Business investment relief OUT
CHAPTER 3  
CORPORATION TAX  
Corporation tax reliefs  
29 Carried-forward losses  (+ schedule 9) OUT
30 Losses: counteraction of avoidance arrangements OUT
31 Corporate interest restriction  (+ schedule 10) OUT
32 Museum and gallery exhibitions  (+ schedule 11) OUT
33 Grassroots sport OUT
34 Profits from the exploitation of patents: cost-sharing arrangements OUT
Hybrids and other mismatches  
35 Permitted taxable periods of payees and deductions for amortisation OUT
Northern Ireland  
36 Trading profits taxable at the Northern Ireland rate (+ schedule 12) OUT
CHAPTER 4  
CHARGEABLE GAINS  
37 Exemption from attribution of carried interest gains OUT
38 Elections in relation to assets appropriated to trading stock OUT
39 Substantial shareholding exemption OUT
40 Substantial shareholding exemption: institutional investors OUT
CHAPTER 5  
PROVISIONS RELATING TO MORE THAN ONE TAX  
Domicile, overseas property etc  
41 Deemed domicile: income tax and capital gains tax (+ schedule 13) OUT
42 Deemed domicile: inheritance tax OUT
43 Settlements and transfer of assets abroad: value of benefits  (+ schedule 14) OUT
44 Inheritance tax on overseas property representing UK residential property (+ schedule 15) OUT
Employee shareholder shares  
Clauses 45-47 IN
Disguised remuneration  
48 Employment income provided through third parties (+ schedules 16 & 17) IN
49 Trading income provided through third parties  (+ schedule 18) OUT
50 Disguised remuneration schemes: restriction of income tax relief OUT
51 Disguised remuneration schemes: restriction of corporation tax relief OUT
Capital allowances  
52 First-year allowance for expenditure on electric vehicle charging points OUT
Transactions in UK land  
53 Disposals concerned with land in United Kingdom OUT
Co-ownership authorised contractual schemes  
Clauses 54-56 OUT
PART 2  
INDIRECT TAXES  
VAT  
57 VAT: zero-rating of adapted motor vehicles etc (+ schedule 19) IN
Insurance premium tax  
58 IPT: standard rate IN
59 IPT: anti-forestalling provision IN
Landfill tax  
60 Landfill tax: taxable disposals OUT
Air passenger duty  
61 Air passenger duty: rates of duty from 1 April 2017 IN
62 Air passenger duty: rates of duty from 1 April 2018 OUT
Petroleum revenue tax  
63 Petroleum revenue tax: elections for oil fields to become non-taxable OUT
Vehicle excise duty  
64 VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc IN
Alcohol duties  
65 Alcoholic liquor duties: rates IN
Gaming duties  
66 Gaming duty: rates OUT
67 Remote gaming duty: freeplay OUT
Tobacco products  
68 Tobacco products duty: rates IN
69 Tobacco products duty: minimum excise duty IN
70 Tobacco products manufacturing machinery: licensing scheme OUT
PART 3  
SOFT DRINKS INDUSTRY LEVY  
71-107 (+ schedules 20-23) IN
PART 4  
FULFILMENT BUSINESSES   
108-119 (+ schedule 24) OUT
PART 5  
ADMINISTRATION, AVOIDANCE AND ENFORCEMENT  
Reporting and record-keeping  
120 Digital reporting and record-keeping for income tax etc  (+ schedule 25) OUT
121 Digital reporting and record-keeping for income tax etc: further amendments OUT
122 Digital reporting and record-keeping for VAT OUT
Enquiries  
123 Partial closure notices (+ schedule 26) OUT
Avoidance etc  
124 Errors in taxpayers’ documents OUT
125 Penalties for enablers of defeated tax avoidance (+ schedule 27) OUT
126 Disclosure of tax avoidance schemes: VAT and other indirect taxes (+ schedule 28) OUT
127 Promoters of tax avoidance schemes: threshold conditions etc IN
128 Requirement to correct certain offshore tax non-compliance (+ schedule 29) OUT
129 Penalty for transactions connected with VAT fraud etc OUT
Customs enforcement powers  
130 Power to enter premises and inspect goods OUT
131 Power to search vehicles or vessels OUT
Information  
132 Data-gathering from money service businesses OUT
PART 6  
FINAL  
133 Northern Ireland welfare payments: updating statutory reference OUT
134 Interpretation IN
135 Short title IN

 

Also worth noting is that the Government has tabled some amendments. Leaving aside a few related to clauses being deleted from the Bill, these cover –
Schedule 2 (Optional remuneration amendments) – amendments 11-12
Schedule 3 (Overseas pensions) – amendments 13-29
Schedule 4 (Pensions: offshore transfers) – amendments 30-56
Schedule 16 (Employment income provided through third parties) – amendment 57

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