UK and International Tax news
Finance Bill 2017 Clauses Published
Friday 9th December 2016
HMRC has recently published draft provisions to be included in the 2017 Finance Bill for consultation and additional consultation documents which were previously announced by the Chancellor in his 2016 Budget and Autumn Statement.
The draft provisions and consultations cover in particular direct taxes, personal allowances and the higher rate threshold, non domicile taxation, the reduction in corporation tax to 17% by 2020, reform of loss relief, a re-scoping of the Bank Levy, preventing the use of disguised remuneration schemes in avoiding NICs and income tax, introducing a new penalty for those who enable the use of tax avoidance schemes that are later defeated by HMRC and creating a new legal requirement to correct a past failure to pay UK tax on offshore accounts and investments with tough new sanctions for those who fail to do so.
Additional measures are also to be introduced which will update the rules around how companies claim tax deductions for interest expenses and losses, hybrid mismatches, and reform of the rules around salary sacrifice.
Amendments are to be made to the rules relating to Enterprise Investment Schemes, Seed Enterprise Investment Schemes and Venture Capital Trusts in relation to share conversion rights, follow-on investments made by VCTs in companies with certain group structures, to align with EIS provisions, for investments made on or after 6 April 2017 and to introduce a power to enable regulations to be made in relation to certain share-for-share exchanges to provide greater certainty to VCTs.
The consultation on the draft legislation will run until 1 February 2017, with final details being confirmed in the spring 2017 Budget with legislation introduced in the corresponding Finance Bill.
If you would like further information on the above, please contact Keith Rushen on 0207 486 2378.
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