Thirty-four tax consultations are expected to be launched during the next three months, the Treasury revealed as it published its new Tax Consultation Framework and a summary of responses to the consultation launched last December.
The Framework sets out the approach the government will take to consultation for ‘most’ tax policy changes. ‘Informal consultation’ will be ‘as transparent as possible, consistent with the need to protect revenue’.
‘Respondents have generally welcomed the framework as a positive step towards achieving the Government's aims of predictability, stability and simplicity for the tax system,’ said David Gauke, the Exchequer Secretary to the Treasury. ‘Many of the suggestions have been incorporated into the finalised framework, while others will be addressed through the guidance and training provided to policy officials.’
The Tax Professionals Forum will monitor ‘the extent to which the commitments in the Framework are met and report to Ministers in their meetings’. Gauke set up the Forum last summer to oversee the government's efforts to reform the framework for developing tax policy and making tax law.
Live and planned consultations
Consultations are listed below in alphabetical order of topic. For planned consultations, only the provisional launch date is known. An updated Tax Consultation Tracker is available on the Treasury website, see www.lexisurl.com/Bm6Q7.
Air passenger duty
Plans to simplify APD and extend aviation tax to ‘business jets’.
Comments to: apd@hmtreasury.gsi.gov.uk
Consultation period: 23 March–17 June 2011
Further guidance: www.lexisurl.com/RSonG
Banks: capital instruments
Tax treatment of new instruments which banks may create to meet Basel III capital requirements.
Consultation period: 10 May 2011
Capital allowances: feed-in tariffs etc
Clarification of treatment of eligible expenditure under schemes to incentivise low carbon electricity generation and heat generation from renewable sources.
Consultation period: 31 May 2011
Capital allowances: fixtures
Changes including the pooling of expenditure on fixtures in a building within a short period of acquiring the building.
Consultation period: 31 May 2011
Capital allowances: plant & machinery
Proposals to make anti-avoidance rules in CAA 2001 Part 2 Ch 17 more effective.
Consultation period: 31 May 2011
Controlled foreign companies
Consultation on the ‘full reform’.
Consultation period: May 2011
Debt cap
Ongoing consultation.
Consultation period: 14 June 2011
Dividends distributed across borders
EC consultation on tax issues relating to cross-border dividends.
Comments to: See ‘How to submit your contribution’
Consultation period: 28 January–30 April 2011
Further guidance: www.lexisurl.com/YPswI
Enterprise investment schemes and venture capital trusts
Further changes including additional support for seed investment.
Consultation period: Summer 2011
Financial sector taxation
EC consultation on a set of policy options including a financial transactions tax and financial activities tax.
Comments to: See ‘How to submit your contribution’
Consultation period: 22 February–19 April 2011
Further guidance: www.lexisurl.com/cETLp
Gift Aid
Small donations scheme to enable charities to make a claim without the need to obtain declarations.
Consultation period: Summer 2011
Gifts of works of art
A tax reduction to encourage donations of pre-eminent works of art or historical objects to the nation.
Consultation period: Autumn 2011
Incapacitated persons
How best to modernise the language used to define an incapacitated person for direct tax purposes.
Consultation period: 10 May 2011
Income tax and NICs: simplification
Initial consultation on reforms to integrate the operation of income tax and NICs.
Consultation period: Autumn 2011
Inheritance tax: charitable legacies
A reduced rate of IHT to apply where 10% or more of a deceased’s net estate is left to charity.
Consultation period: 31 May 2011
Insurers: claims equalisation reserves
Examining the justification for continuing tax relief for general claims equalisation reserves.
Consultation period: April 2011
IPCC: guidance for HMRC
Independent Police Complaints Commission’s proposed guidance to HMRC on handling of serious allegations about HMRC officers.
Comments to: consultation@ipcc.gov.uk
Consultation period: 23 March–20 June 2011
Further guidance: www.lexisurl.com/RWaoE
Junior ISAs
Comments are invited on draft regulations and the design of Junior ISAs generally.
Comments to: rosemary.ohen@hmtreasury.gsi.gov.uk
Consultation period: 31 March–31 May 2011
Further guidance: www.lexisurl.com/gXY6F
Life insurance: protection
Protection life insurance: changes to the taxation of certain long term business.
Consultation period: April 2011
Life Insurance Companies: a new corporate tax regime
A new regime to have effect from January 2013. Change has been made necessary by the EU Solvency II Directive.
Comments to: andy.stewardson@hmrc.gsi.gov.uk
Consultation period: 5 April 2011–28 June 2011
Further guidance: www.lexisurl.com/p85T2
Lloyd’s: stop loss insurance
Legislation to ensure that expenses are deducted at the same time as related profits are recognised.
Consultation period: April 2011
Loan relationships and derivative contracts
Proposals to alter the circumstances in which the disregard regulations apply.
Consultation period: 24 May 2011
Machine games duty
The design characteristics of the new duty.
Consultation period: May 2011
Non-domiciled individuals
The detail of reform of the taxation of non-domiciled individuals.
Consultation period: 14 June 2011
Northern Ireland: corporation tax
Possible steps to accelerate the 'rebalancing' of the NI economy through the tax system, including allowing NI to vary corporation tax rates.
Comments to: niconsultation@hmtreasury.gsi.gov.uk
Consultation period: 24 March–24 June 2011
Further guidance: www.lexisurl.com/lGKUk
Oil and gas
Adoption of mandatory price reporting agency-based method for valuing non arm’s length sales of gas by gas producing companies.
Consultation period: May 2011
Online registration
Mandation of the use of a new online ‘registration wizard’ for the main business taxes.
Consultation period: 14 June 2011
Patent box
Further consultation.
Consultation period: May 2011
Penalties
Simplification of ‘regulatory penalties’ for failure to comply with obligations across the tax and duty regimes.
Consultation period: June 2011
Pension schemes
Limiting tax relief available to employers making asset-backed contributions to defined benefit pension schemes so that the relief accurately reflects increase in value of pension plan asset.
Consultation period: May 2011
Personal tax: administration
How the administration of the personal tax system can become more transparent and accessible to individuals taxpayers.
Consultation period: Autumn 2011
Qualifying time deposits
Alignment of tax collection arrangements for QTD accounts with those applying to comparable saving products.
Consultation period: May 2011
Real estate investment trusts
Informal discussion of Budget 2011 measures.
Comments to: ReitsConsultation@hmtreasury.gsi.gov.uk
Consultation period: 5 April 2011–10 June 2011
Further guidance: www.lexisurl.com/KObri
Research and development tax credits
Further consultation on the detail of proposed changes.
Consultation period: May 2011
Residence: statutory residence test
The detail of a statutory definition of tax residence for individuals.
Consultation period: 14 June 2011
Tax agents: penalties etc
Proposals allowing HMRC to obtain working papers of dishonest tax agents, penalise them and publish their details on the HMRC website.
Consultation period: 14 July 2011
Tax agents: working with HMRC
The longer term vision for HMRC’s engagement with tax agents, setting out ‘the outcomes HMRC will deliver by 2015’.
Consultation period: May 2011
Tax avoidance: disclosure
Implementing further changes to the hallmarks.
Consultation period: June 2011
Tax avoidance: ‘high risk’ areas
A programme of work to strengthen the legislative framework in areas of the tax code that ‘have repeatedly been subject to avoidance attempts’.
Consultations on (1) relief for income tax losses and (2) the taxation of unauthorised unit trusts.
Consultation period: June 2011
Tax avoidance: listed schemes
Proposals to list certain avoidance schemes in regulations and reduce the cash flow advantage of using them, as set out in Tackling tax avoidance published on 23 March.
Consultation period: May 2011
Tax avoidance: tax treaties
Measures to deny relief or exemption from UK tax where a claim is made under a DTA and arrangements have been made in relation to the claim to avoid UK tax.
Consultation period: 7 June 2011
Tax reliefs: abolition
Abolition as announced at Budget 2011.
Consultation period: May 2011
Tax transparent fund
Establishing a vehicle to support competitiveness of the UK fund industry following European regulatory changes.
Consultation period: June 2011
VAT cost-sharing
Options for implementing the exemption for charities etc wishing to make efficiency savings by working together.
Consultation period: ‘Ongoing’
VAT: imported road vehicles
A new on-line vehicle notification system to tackle fraud.
Consultation period: May 2011
VAT: Green Paper
EC consultation on Green Paper on the future of VAT.
Comments to: mailto:TAXUD-VAT-greenpaper@ec.europa.eu
Consultation period: 1 December 2010–31 May 2011
Further guidance: www.lexisurl.com/YYkFa
VAT groups: enacting ESC 3.2.2
How best to legislate the concession placing a cap on the value of a tax charge required within VAT groups (see Revenue & Customs Brief 16/11).
Consultation period: 10 May 2011
VAT: online filing
Mandation of online filing of returns and electronic payments for traders with a VAT exclusive turnover under £100,000 from April 2012.
Consultation period: 14 June 2011
VAT: online registration
Mandation of online registration, de-registration and notification of changes from August 2012.
Consultation period: 14 June 2011
Thirty-four tax consultations are expected to be launched during the next three months, the Treasury revealed as it published its new Tax Consultation Framework and a summary of responses to the consultation launched last December.
The Framework sets out the approach the government will take to consultation for ‘most’ tax policy changes. ‘Informal consultation’ will be ‘as transparent as possible, consistent with the need to protect revenue’.
‘Respondents have generally welcomed the framework as a positive step towards achieving the Government's aims of predictability, stability and simplicity for the tax system,’ said David Gauke, the Exchequer Secretary to the Treasury. ‘Many of the suggestions have been incorporated into the finalised framework, while others will be addressed through the guidance and training provided to policy officials.’
The Tax Professionals Forum will monitor ‘the extent to which the commitments in the Framework are met and report to Ministers in their meetings’. Gauke set up the Forum last summer to oversee the government's efforts to reform the framework for developing tax policy and making tax law.
Live and planned consultations
Consultations are listed below in alphabetical order of topic. For planned consultations, only the provisional launch date is known. An updated Tax Consultation Tracker is available on the Treasury website, see www.lexisurl.com/Bm6Q7.
Air passenger duty
Plans to simplify APD and extend aviation tax to ‘business jets’.
Comments to: apd@hmtreasury.gsi.gov.uk
Consultation period: 23 March–17 June 2011
Further guidance: www.lexisurl.com/RSonG
Banks: capital instruments
Tax treatment of new instruments which banks may create to meet Basel III capital requirements.
Consultation period: 10 May 2011
Capital allowances: feed-in tariffs etc
Clarification of treatment of eligible expenditure under schemes to incentivise low carbon electricity generation and heat generation from renewable sources.
Consultation period: 31 May 2011
Capital allowances: fixtures
Changes including the pooling of expenditure on fixtures in a building within a short period of acquiring the building.
Consultation period: 31 May 2011
Capital allowances: plant & machinery
Proposals to make anti-avoidance rules in CAA 2001 Part 2 Ch 17 more effective.
Consultation period: 31 May 2011
Controlled foreign companies
Consultation on the ‘full reform’.
Consultation period: May 2011
Debt cap
Ongoing consultation.
Consultation period: 14 June 2011
Dividends distributed across borders
EC consultation on tax issues relating to cross-border dividends.
Comments to: See ‘How to submit your contribution’
Consultation period: 28 January–30 April 2011
Further guidance: www.lexisurl.com/YPswI
Enterprise investment schemes and venture capital trusts
Further changes including additional support for seed investment.
Consultation period: Summer 2011
Financial sector taxation
EC consultation on a set of policy options including a financial transactions tax and financial activities tax.
Comments to: See ‘How to submit your contribution’
Consultation period: 22 February–19 April 2011
Further guidance: www.lexisurl.com/cETLp
Gift Aid
Small donations scheme to enable charities to make a claim without the need to obtain declarations.
Consultation period: Summer 2011
Gifts of works of art
A tax reduction to encourage donations of pre-eminent works of art or historical objects to the nation.
Consultation period: Autumn 2011
Incapacitated persons
How best to modernise the language used to define an incapacitated person for direct tax purposes.
Consultation period: 10 May 2011
Income tax and NICs: simplification
Initial consultation on reforms to integrate the operation of income tax and NICs.
Consultation period: Autumn 2011
Inheritance tax: charitable legacies
A reduced rate of IHT to apply where 10% or more of a deceased’s net estate is left to charity.
Consultation period: 31 May 2011
Insurers: claims equalisation reserves
Examining the justification for continuing tax relief for general claims equalisation reserves.
Consultation period: April 2011
IPCC: guidance for HMRC
Independent Police Complaints Commission’s proposed guidance to HMRC on handling of serious allegations about HMRC officers.
Comments to: consultation@ipcc.gov.uk
Consultation period: 23 March–20 June 2011
Further guidance: www.lexisurl.com/RWaoE
Junior ISAs
Comments are invited on draft regulations and the design of Junior ISAs generally.
Comments to: rosemary.ohen@hmtreasury.gsi.gov.uk
Consultation period: 31 March–31 May 2011
Further guidance: www.lexisurl.com/gXY6F
Life insurance: protection
Protection life insurance: changes to the taxation of certain long term business.
Consultation period: April 2011
Life Insurance Companies: a new corporate tax regime
A new regime to have effect from January 2013. Change has been made necessary by the EU Solvency II Directive.
Comments to: andy.stewardson@hmrc.gsi.gov.uk
Consultation period: 5 April 2011–28 June 2011
Further guidance: www.lexisurl.com/p85T2
Lloyd’s: stop loss insurance
Legislation to ensure that expenses are deducted at the same time as related profits are recognised.
Consultation period: April 2011
Loan relationships and derivative contracts
Proposals to alter the circumstances in which the disregard regulations apply.
Consultation period: 24 May 2011
Machine games duty
The design characteristics of the new duty.
Consultation period: May 2011
Non-domiciled individuals
The detail of reform of the taxation of non-domiciled individuals.
Consultation period: 14 June 2011
Northern Ireland: corporation tax
Possible steps to accelerate the 'rebalancing' of the NI economy through the tax system, including allowing NI to vary corporation tax rates.
Comments to: niconsultation@hmtreasury.gsi.gov.uk
Consultation period: 24 March–24 June 2011
Further guidance: www.lexisurl.com/lGKUk
Oil and gas
Adoption of mandatory price reporting agency-based method for valuing non arm’s length sales of gas by gas producing companies.
Consultation period: May 2011
Online registration
Mandation of the use of a new online ‘registration wizard’ for the main business taxes.
Consultation period: 14 June 2011
Patent box
Further consultation.
Consultation period: May 2011
Penalties
Simplification of ‘regulatory penalties’ for failure to comply with obligations across the tax and duty regimes.
Consultation period: June 2011
Pension schemes
Limiting tax relief available to employers making asset-backed contributions to defined benefit pension schemes so that the relief accurately reflects increase in value of pension plan asset.
Consultation period: May 2011
Personal tax: administration
How the administration of the personal tax system can become more transparent and accessible to individuals taxpayers.
Consultation period: Autumn 2011
Qualifying time deposits
Alignment of tax collection arrangements for QTD accounts with those applying to comparable saving products.
Consultation period: May 2011
Real estate investment trusts
Informal discussion of Budget 2011 measures.
Comments to: ReitsConsultation@hmtreasury.gsi.gov.uk
Consultation period: 5 April 2011–10 June 2011
Further guidance: www.lexisurl.com/KObri
Research and development tax credits
Further consultation on the detail of proposed changes.
Consultation period: May 2011
Residence: statutory residence test
The detail of a statutory definition of tax residence for individuals.
Consultation period: 14 June 2011
Tax agents: penalties etc
Proposals allowing HMRC to obtain working papers of dishonest tax agents, penalise them and publish their details on the HMRC website.
Consultation period: 14 July 2011
Tax agents: working with HMRC
The longer term vision for HMRC’s engagement with tax agents, setting out ‘the outcomes HMRC will deliver by 2015’.
Consultation period: May 2011
Tax avoidance: disclosure
Implementing further changes to the hallmarks.
Consultation period: June 2011
Tax avoidance: ‘high risk’ areas
A programme of work to strengthen the legislative framework in areas of the tax code that ‘have repeatedly been subject to avoidance attempts’.
Consultations on (1) relief for income tax losses and (2) the taxation of unauthorised unit trusts.
Consultation period: June 2011
Tax avoidance: listed schemes
Proposals to list certain avoidance schemes in regulations and reduce the cash flow advantage of using them, as set out in Tackling tax avoidance published on 23 March.
Consultation period: May 2011
Tax avoidance: tax treaties
Measures to deny relief or exemption from UK tax where a claim is made under a DTA and arrangements have been made in relation to the claim to avoid UK tax.
Consultation period: 7 June 2011
Tax reliefs: abolition
Abolition as announced at Budget 2011.
Consultation period: May 2011
Tax transparent fund
Establishing a vehicle to support competitiveness of the UK fund industry following European regulatory changes.
Consultation period: June 2011
VAT cost-sharing
Options for implementing the exemption for charities etc wishing to make efficiency savings by working together.
Consultation period: ‘Ongoing’
VAT: imported road vehicles
A new on-line vehicle notification system to tackle fraud.
Consultation period: May 2011
VAT: Green Paper
EC consultation on Green Paper on the future of VAT.
Comments to: mailto:TAXUD-VAT-greenpaper@ec.europa.eu
Consultation period: 1 December 2010–31 May 2011
Further guidance: www.lexisurl.com/YYkFa
VAT groups: enacting ESC 3.2.2
How best to legislate the concession placing a cap on the value of a tax charge required within VAT groups (see Revenue & Customs Brief 16/11).
Consultation period: 10 May 2011
VAT: online filing
Mandation of online filing of returns and electronic payments for traders with a VAT exclusive turnover under £100,000 from April 2012.
Consultation period: 14 June 2011
VAT: online registration
Mandation of online registration, de-registration and notification of changes from August 2012.
Consultation period: 14 June 2011
