Much like temperatures across Britain, Parliament has now risen for the summer recess. Ahead of this though, there were some further updates on Finance Bill 2016/17 to keep us busy, with a number of amendments being published ahead of the report stage on 5 September and the third reading on 6 September 2016. The dates of the House of Lords stages have also been published. Second reading and all remaining stages will take place on 13 September 2016, with royal assent expected to follow shortly after.
The most recent amendments to the Finance Bill include:
Withdrawal of disguised remuneration relief pushed back to April 2017: The government has said that it wants to ensure all users of disguised remuneration schemes (broadly speaking employee benefit trusts) have the opportunity to settle with HMRC before the transitional relief in para 59 is withdrawn. Therefore an amendment to Finance Bill 2016 has been tabled to extend the date for the withdrawal to 31 March 2017. The amendment, once agreed by Parliament, will mean that users who want to benefit from the transitional relief on investment growth in para 59 must have settled on or before 31 March 2017.
Hybrid mismatches: There have been a number of amendments in relation to the hybrid mismatch rules. In particular, significant amendments were made to chapters 3, 4 and 6, in relation to financial instruments, hybrid transfer arrangements and permanent establishments.
VCTs – requirements for giving approval: The amendment adds money and short term deposits of money to the list of permitted non-qualifying investments in s 274(3A) of the Income Tax Act 2007, and has effect for deposits made on or after 6 April 2016.
There are also amendments to the abolition of dividend tax credits, and the general anti-abuse rule (GAAR).
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Finance Bill 2016: new government amendments
Details of the latest developments.
Much like temperatures across Britain, Parliament has now risen for the summer recess. Ahead of this though, there were some further updates on Finance Bill 2016/17 to keep us busy, with a number of amendments being published ahead of the report stage on 5 September and the third reading on 6 September 2016. The dates of the House of Lords stages have also been published. Second reading and all remaining stages will take place on 13 September 2016, with royal assent expected to follow shortly after.
The most recent amendments to the Finance Bill include:
Withdrawal of disguised remuneration relief pushed back to April 2017: The government has said that it wants to ensure all users of disguised remuneration schemes (broadly speaking employee benefit trusts) have the opportunity to settle with HMRC before the transitional relief in para 59 is withdrawn. Therefore an amendment to Finance Bill 2016 has been tabled to extend the date for the withdrawal to 31 March 2017. The amendment, once agreed by Parliament, will mean that users who want to benefit from the transitional relief on investment growth in para 59 must have settled on or before 31 March 2017.
Hybrid mismatches: There have been a number of amendments in relation to the hybrid mismatch rules. In particular, significant amendments were made to chapters 3, 4 and 6, in relation to financial instruments, hybrid transfer arrangements and permanent establishments.
VCTs – requirements for giving approval: The amendment adds money and short term deposits of money to the list of permitted non-qualifying investments in s 274(3A) of the Income Tax Act 2007, and has effect for deposits made on or after 6 April 2016.
There are also amendments to the abolition of dividend tax credits, and the general anti-abuse rule (GAAR).
