HM Treasury confirmed in yesterday’s autumn statement that draft legislation for Finance Bill 2012 will be published on 6 December. This A-Z guide indicates what we can expect to see in FB 2012 and lists the current and recently closed HM Treasury and HMRC tax consultations.
More on the autumn statement:Autumn statement: Key business tax announcements |
We have summarised under each heading what the government said regarding the timing of the reform in the relevant consultation document and, where appropriate, in the autumn statement.
The government, of course, may decide not to proceed with every proposal under consultation.
If you think we have missed something, please email andrew.goodall@lexisnexis.co.uk.
Air passenger duty
Plans to simplify APD and extend aviation tax to business jets. Consultation closed 17 June, see www.lexisurl.com/RSonG.
The autumn statement said the government would publish a detailed response to the consultation on 6 December and proceed with the extension of APD from April 2013 to flights taken aboard business jets.
Capital allowances: feed-in tariffs & renewable heat incentive
Fixing a rate of capital allowances for eligible expenditure under schemes to incentivise low carbon electricity generation and heat generation from renewable sources. Consultation closed 31 August, see www.lexisurl.com/szcUi.
The consultation document (condoc) said: ‘A summary of responses [and draft legislation] will be published later this year.’
Capital allowances: fixtures
Changes including the pooling of expenditure on fixtures in a building within a short period of acquiring the building. Consultation closed 31 August, see www.lexisurl.com/zZsRc.
Condoc: Legislation planned for FB 2012.
Capital allowances: anti-avoidance for plant and machinery
Making the rules in CAA 2001 Part 2 Ch 17 more effective. Consultation closed 31 August, see www.lexisurl.com/hpGpS.
Condoc: Legislation planned for FB 2012. One of the proposed measures will take effect from 12 August 2011, the Treasury announced.
Charitable legacies
A reduced rate of inheritance tax to apply where 10% or more of a deceased’s net estate is left to charity. Consultation closed 31 August, see www.lexisurl.com/4CX2q.
Condoc: ‘This change is expected to apply for deaths on or after 6 April 2012 ... draft legislation to be published for further consultation before Budget 2012.’
Controlled foreign companies
Consultation on ‘full reform’ of the CFC regime. Consultation closed 22 September, see www.lexisurl.com/9VCvm.
Condoc: Legislation planned for FB 2012.
Autumn statement: Draft legislation will be published on 6 December.
Customs & Excise law
Proposals to update Customs and Excise Management Act 1979. Consultation closed 7 November, see www.lexisurl.com/ItrDE.
Condoc: ‘If Ministers decide to proceed with the modernisation of customs and excise legislation, we will publish more detailed proposals for legislative change and draft legislative clauses at a later date.’
Debt cap
Potential changes to the reliefs for interest and other financing costs. Consultation closed 5 September, see www.lexisurl.com/XKksp.
Condoc: Technical note explored ‘issues that may be suitable for inclusion in [FB 2012]’.
Digital by default
Mandation of the use of a new online ‘registration wizard’ for the main business taxes. Consultation closed 31 October, see www.lexisurl.com/OryZU.
Condoc: ‘Registration Wizard will be available for use from April 2012 and will become the default channel during 2013.’
Enterprise Investment Scheme and Venture Capital Trusts
Changes including additional support for seed investment through the EIS. Consultation closed 28 September, see www.lexisurl.com/68C13.
Condoc: Legislation planned for FB 2012.
Autumn statement: A new Seed Enterprise Investment Scheme (SEIS) from April 2012 will offer 50% income tax relief on investments and a CGT exemption for gains realised in 2012/13 and then invested through SEIS in the same year. The government will also ‘simplify and refocus’ the EIS and VCT regimes.
Fraud
Exploring the concept of a contractual disclosure facility (CDF) to tighten HMRC’s approach to civil investigation of fraud. Consultation closed 20 September, see www.lexisurl.com/QRUzf.
Condoc: The CDF does not require legislative change. The next stage of policy development ‘would be to develop guidance and publish the new Code of Practice which we would aim to expose for comment’.
General anti-avoidance rule
Graham Aaronson’s study group reported on 21 November, recommending a targeted ‘anti-abuse’ rule.
HM Treasury said on 21 November that the government would respond at Budget 2012 and had committed ‘not to introduce a GAAR without further formal public consultation’.
Gifts of pre-eminent objects and works of art to the nation
A tax reduction to encourage donations of pre-eminent works of art or historical objects. Consultation closed 21 September, see www.lexisurl.com/O8IJ1.
Condoc: Draft legislation to be published for further consultation before Budget 2012.
Autumn statement: ‘The government will legislate to enable individuals to receive a reduction in their income tax or capital gains tax liabilities, and companies to receive a reduction in their corporation tax liabilities, in return for donating pre-eminent objects.’
High risk tax avoidance schemes
Proposals to list certain avoidance schemes in regulations and reduce the cash flow advantage of using them. Consultation closed 31 August, see www.lexisurl.com/fSxeX.
Condoc: Legislation planned for FB 2012.
HMRC information powers
How to ensure that HMRC can collect information in specific cases where the full identity of the taxpayer is not known but can be ascertained by reference to other available information. Consultation closed 29 September, see www.lexisurl.com/dyvtJ.
Condoc: Legislation planned for FB 2012.
Incapacitated person
Review of the wording used to define an incapacitated person for direct tax purposes. Consultation closed 16 August, see www.lexisurl.com/B5V2B.
Condoc: Legislation planned for FB 2012.
Income tax loss relief
Exploring ways of ‘ensuring that genuine business losses and employment losses are relieved while effectively deterring taxpayers from entering into tax avoidance arrangements intended to exploit [reliefs against general income or gains]’. Consultation closed 30 September, see www.lexisurl.com/PNmCC.
Condoc: ‘The intention is to make an interim announcement on progress at Budget 2012. There will be a further consultation on any proposed draft legislation in autumn 2012 with a view to introducing legislation in [FB 2013] at the earliest.’
Income tax & NICs (live consultation)
The principles to be applied in considering proposals to integrate the operation of income tax and NICs.
Comments to: incometaxnics.simplification@hmtreasury.gsi.gov.uk
Consultation period: 14 November 2011–[not specified]
Further guidance: www.lexisurl.com/KliOK
Condoc: The government will provide an update at Budget 2012. Any significant reform of the operation of income tax and NICs ‘will take two Parliaments to deliver’.
Lecturers, teachers, instructors or those in a similar capacity (live consultation)
The possible repeal of NIC regulations for such workers who are self-employed for tax purposes.
Comments to: Philip.Hogan@hmrc.gsi.gov.uk
Consultation period: 7 October 2011–6 January 2012
Further guidance: www.lexisurl.com/CTCX4
Condoc: HMRC proposes a repeal of the regulations with effect from 6 April 2012.
Life insurance companies
A new corporate tax regime to comply with EU Solvency II Directive. Consultation closed 28 June, see www.lexisurl.com/p85T2.
Condoc: Legislation planned for FB 2012, effective from 1 January 2013.
Machine games duty
The design characteristics of the new duty. Consultation closed 26 July, see www.lexisurl.com/LemH4.
Condoc: Legislation planned for FB 2012.
Manufactured overseas dividends
HM Treasury announced on 15 September that FB 2012 would block an avoidance scheme with effect from that date.
Autumn statement: The government ‘will put beyond doubt that [MODs] cannot be used to obtain repayment or set off of income tax that the Exchequer does not receive’.
Money laundering
Proposed changes to the Money Laundering Regulations 2007. Consultation closed 30 August, see www.lexisurl.com/wCHqo.
Condoc: ‘Subject to final decisions we would anticipate any legislative changes adopted to come into effect in 2012.’
Mutual assistance
Draft regulations to give effect to the new EU Mutual Assistance in Recovery Directive, Council Directive 2010/24/EU. Consultation closed 11 November, see www.lexisurl.com/OXFkh.
Condoc: The UK is obliged to transpose the Directive by 31 December 2011.
Non-domiciled individuals
Reform to encourage non-doms to invest and do business in the UK, while ensuring that ‘they make a greater tax contribution, especially when they have been resident in the UK for many years’. Consultation closed 9 September, see www.lexisurl.com/R6U5n.
Condoc: Legislation planned for FB 2012.
Northern Ireland
Possible steps to accelerate the 'rebalancing' of the Northern Ireland economy through the tax system, including allowing Northern Ireland to vary corporation tax rates. Consultation closed 8 July, see www.lexisurl.com/lGKUk.
Condoc: ‘The government proposes to consider establishing a high-level consultation group involving representatives from the private sector and others in Northern Ireland.’
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 closed 2 August, see www.lexisurl.com/gWRAX.
Condoc: ‘Responses to this document will inform whether or not to recommend to Ministers proposals for amending the current gas valuation rules.’
Autumn statement: No statement regarding valuation rules, but the Treasury confirmed that, as announced in July, the annual rate of the ring fence expenditure supplement will be increased from 6% to 10%.
Patent Box
A preferential tax regime from April 2013 for profits arising from patents. Consultation closed 2 September, see www.lexisurl.com/KCXzN.
Condoc: Legislation planned for FB 2012.
Autumn statement: Draft legislation will be published on 6 December.
PAYE: Real Time Information (live consultation)
Draft amendments to legislation in readiness for the introduction of RTI.
Comments to: pa.harris@hmrc.gsi.gov.uk
Consultation period: 14 November 2011–9 January 2012
Further guidance: www.lexisurl.com/xHkQX
Condoc: FB 2012 will include a new power enabling HMRC to require employers to give certain information about payments of salaries etc to their banks, and for the banks to pass that information to HMRC.
PAYE Pooling (live consultation)
A possible change to allow closely connected employers to be treated as a single entity for PAYE purposes.
Comments to: toni.mpario@hmrc.gsi.gov.uk
Consultation period: 24 October 2011–15 December 2011
Further guidance: www.lexisurl.com/5rLex
Condoc: Responses will inform the decision as to ‘whether PAYE Pooling should be taken forward’.
Penalties: simplification of regulatory penalties
The first of two consultations in the final stage of the ‘Review of Powers’ reforms of penalties. Consultation closed 9 September, see www.lexisurl.com/zi07y.
Condoc: ‘A full response document will be published. HMRC will prepare a further consultation with detailed proposals for a new penalty framework.’
Pension schemes: employer asset-backed contributions
Limiting tax relief available to employers making asset-backed contributions to defined benefit pension schemes. Consultation closed 16 August, see www.lexisurl.com/XWUPZ.
Condoc: Legislation planned for FB 2012.
Autumn statement: This change will take effect from 29 November 2011, when draft legislation was published.
Personal tax administration (live consultation)
Modernising the administration of the personal tax system to make it more transparent and accessible.
Comments to: PTAdministration.responses@hmrc.gsi.gov.uk
Consultation period: 14 November 2011–24 February 2012
Further guidance: www.lexisurl.com/0fL9m
Condoc: Several reforms are proposed or in progress.
Qualifying time deposits
New rules for qualifying time deposits. Consultation closed 31 July, see www.lexisurl.com/Yzsvm.
Condoc: Interest from QTD accounts opened from 6 April 2012 will fall within tax deduction at source rules.
Real estate investment trusts
Informal consultation closed 10 June, see www.lexisurl.com/KObri.
HM Treasury said following consultation that legislation was planned for FB 2012.
Reliefs: abolition
Consultation on the abolition of 36 tax reliefs, as identified by the Office for Tax Simplification. Consultation closed 31 August, see www.lexisurl.com/DerlD.
Condoc: Legislation planned for FB 2012 for ‘most of the reliefs’.
Remote gambling
The case for amending the taxation regime for remote gambling. Consultation closed 30 November, see www.lexisurl.com/sceA8.
Condoc: ‘If, following this review, the government decides to proceed with reform, a formal consultation would then be carried out as part of [consultation] stage 2 ...’
Research & development tax credits
Proposals to simplify the R&D tax credits and make them more effective. Consultation closed 2 September, see www.lexisurl.com/7qg3j.
Condoc: Legislation planned for FB 2012.
Autumn statement: Draft legislation will be published on 6 December.
Residence: statutory definition
The detail of a statutory definition of tax residence for individuals. Consultation closed 9 September, see www.lexisurl.com/4ZtMX.
Condoc: Legislation planned for FB 2012.
Tax agents: dishonest conduct
Proposals allowing HMRC to obtain penalise dishonest tax agents. Consultation closed 16 September, see www.lexisurl.com/K3DM2.
Condoc: Any changes ‘might be introduced’ through FB 2012.
Tax agents: relationship with HMRC
The longer term vision for HMRC’s engagement with tax agents. Consultation closed 16 September, see www.lexisurl.com/JG0VL.
Condoc: ‘HMRC seeks views on the proposals and options ... and the scope and pace of any changes in the period of the current spending review through to April 2015 and beyond.’
Tax treaties anti-avoidance
Measures to deny relief or exemption from UK tax where a claim is made under a double tax agreement and arrangements have been made in relation to the claim to avoid UK tax.
Consultation withdrawn.
Unauthorised unit trusts
Exploring ways of simplifying taxation of unauthorised unit trusts and their investors to reduce administrative burdens and remove avoidance opportunities. Consultation closed 30 September, see www.lexisurl.com/l88xM.
Condoc: ‘The intention is to make an interim announcement on progress at Budget 2012. There will be a further consultation on any proposed draft legislation in Autumn 2012 with a view to introducing legislation in [FB 2013] at the earliest.’
VAT: cost-sharing exemption
Options for implementing the exemption for charities etc wishing to make efficiency savings by working together. Consultation closed 30 September, see www.lexisurl.com/9JE9O.
Condoc: ‘A summary of responses will be published in the Autumn.’
Autumn statement: The government will introduce a VAT exemption for services shared between VAT exempt bodies, including charities and universities.
VAT: groups
How best to legislate concession ESC 3.2.2 placing a cap on the value of a tax charge required within VAT groups. Consultation closed 3 August, see www.lexisurl.com/NAUlJ.
Condoc: Legislation planned for FB 2012.
VAT: imported road vehicles
A new on-line vehicle notification system to tackle fraud. Consultation closed 31 August, see www.lexisurl.com/oc3HN.
Condoc: Legislation planned for FB 2012.
VAT: online
Mandation of online filing of returns and electronic payments from April 2012 for traders with turnover under £100,000, and introduction of an enhanced online service for VAT registration, deregistration and notification of changes. Consultation closed 31 October, see www.lexisurl.com/7gMWe.
Condoc: ‘Subject to Ministerial approval, a summary of responses will be published on the HMRC website ... HMRC proposes that from 1 April 2012 for VAT registered businesses with a turnover below £100,000 it will be compulsory to file VAT returns online and make electronic payment of any VAT due. In support of the digital by default agenda, online will also become the default channel for all businesses for VAT registration, deregistration and changes to registered details but will not be mandated at this stage.’
HM Treasury confirmed in yesterday’s autumn statement that draft legislation for Finance Bill 2012 will be published on 6 December. This A-Z guide indicates what we can expect to see in FB 2012 and lists the current and recently closed HM Treasury and HMRC tax consultations.
More on the autumn statement:Autumn statement: Key business tax announcements |
We have summarised under each heading what the government said regarding the timing of the reform in the relevant consultation document and, where appropriate, in the autumn statement.
The government, of course, may decide not to proceed with every proposal under consultation.
If you think we have missed something, please email andrew.goodall@lexisnexis.co.uk.
Air passenger duty
Plans to simplify APD and extend aviation tax to business jets. Consultation closed 17 June, see www.lexisurl.com/RSonG.
The autumn statement said the government would publish a detailed response to the consultation on 6 December and proceed with the extension of APD from April 2013 to flights taken aboard business jets.
Capital allowances: feed-in tariffs & renewable heat incentive
Fixing a rate of capital allowances for eligible expenditure under schemes to incentivise low carbon electricity generation and heat generation from renewable sources. Consultation closed 31 August, see www.lexisurl.com/szcUi.
The consultation document (condoc) said: ‘A summary of responses [and draft legislation] will be published later this year.’
Capital allowances: fixtures
Changes including the pooling of expenditure on fixtures in a building within a short period of acquiring the building. Consultation closed 31 August, see www.lexisurl.com/zZsRc.
Condoc: Legislation planned for FB 2012.
Capital allowances: anti-avoidance for plant and machinery
Making the rules in CAA 2001 Part 2 Ch 17 more effective. Consultation closed 31 August, see www.lexisurl.com/hpGpS.
Condoc: Legislation planned for FB 2012. One of the proposed measures will take effect from 12 August 2011, the Treasury announced.
Charitable legacies
A reduced rate of inheritance tax to apply where 10% or more of a deceased’s net estate is left to charity. Consultation closed 31 August, see www.lexisurl.com/4CX2q.
Condoc: ‘This change is expected to apply for deaths on or after 6 April 2012 ... draft legislation to be published for further consultation before Budget 2012.’
Controlled foreign companies
Consultation on ‘full reform’ of the CFC regime. Consultation closed 22 September, see www.lexisurl.com/9VCvm.
Condoc: Legislation planned for FB 2012.
Autumn statement: Draft legislation will be published on 6 December.
Customs & Excise law
Proposals to update Customs and Excise Management Act 1979. Consultation closed 7 November, see www.lexisurl.com/ItrDE.
Condoc: ‘If Ministers decide to proceed with the modernisation of customs and excise legislation, we will publish more detailed proposals for legislative change and draft legislative clauses at a later date.’
Debt cap
Potential changes to the reliefs for interest and other financing costs. Consultation closed 5 September, see www.lexisurl.com/XKksp.
Condoc: Technical note explored ‘issues that may be suitable for inclusion in [FB 2012]’.
Digital by default
Mandation of the use of a new online ‘registration wizard’ for the main business taxes. Consultation closed 31 October, see www.lexisurl.com/OryZU.
Condoc: ‘Registration Wizard will be available for use from April 2012 and will become the default channel during 2013.’
Enterprise Investment Scheme and Venture Capital Trusts
Changes including additional support for seed investment through the EIS. Consultation closed 28 September, see www.lexisurl.com/68C13.
Condoc: Legislation planned for FB 2012.
Autumn statement: A new Seed Enterprise Investment Scheme (SEIS) from April 2012 will offer 50% income tax relief on investments and a CGT exemption for gains realised in 2012/13 and then invested through SEIS in the same year. The government will also ‘simplify and refocus’ the EIS and VCT regimes.
Fraud
Exploring the concept of a contractual disclosure facility (CDF) to tighten HMRC’s approach to civil investigation of fraud. Consultation closed 20 September, see www.lexisurl.com/QRUzf.
Condoc: The CDF does not require legislative change. The next stage of policy development ‘would be to develop guidance and publish the new Code of Practice which we would aim to expose for comment’.
General anti-avoidance rule
Graham Aaronson’s study group reported on 21 November, recommending a targeted ‘anti-abuse’ rule.
HM Treasury said on 21 November that the government would respond at Budget 2012 and had committed ‘not to introduce a GAAR without further formal public consultation’.
Gifts of pre-eminent objects and works of art to the nation
A tax reduction to encourage donations of pre-eminent works of art or historical objects. Consultation closed 21 September, see www.lexisurl.com/O8IJ1.
Condoc: Draft legislation to be published for further consultation before Budget 2012.
Autumn statement: ‘The government will legislate to enable individuals to receive a reduction in their income tax or capital gains tax liabilities, and companies to receive a reduction in their corporation tax liabilities, in return for donating pre-eminent objects.’
High risk tax avoidance schemes
Proposals to list certain avoidance schemes in regulations and reduce the cash flow advantage of using them. Consultation closed 31 August, see www.lexisurl.com/fSxeX.
Condoc: Legislation planned for FB 2012.
HMRC information powers
How to ensure that HMRC can collect information in specific cases where the full identity of the taxpayer is not known but can be ascertained by reference to other available information. Consultation closed 29 September, see www.lexisurl.com/dyvtJ.
Condoc: Legislation planned for FB 2012.
Incapacitated person
Review of the wording used to define an incapacitated person for direct tax purposes. Consultation closed 16 August, see www.lexisurl.com/B5V2B.
Condoc: Legislation planned for FB 2012.
Income tax loss relief
Exploring ways of ‘ensuring that genuine business losses and employment losses are relieved while effectively deterring taxpayers from entering into tax avoidance arrangements intended to exploit [reliefs against general income or gains]’. Consultation closed 30 September, see www.lexisurl.com/PNmCC.
Condoc: ‘The intention is to make an interim announcement on progress at Budget 2012. There will be a further consultation on any proposed draft legislation in autumn 2012 with a view to introducing legislation in [FB 2013] at the earliest.’
Income tax & NICs (live consultation)
The principles to be applied in considering proposals to integrate the operation of income tax and NICs.
Comments to: incometaxnics.simplification@hmtreasury.gsi.gov.uk
Consultation period: 14 November 2011–[not specified]
Further guidance: www.lexisurl.com/KliOK
Condoc: The government will provide an update at Budget 2012. Any significant reform of the operation of income tax and NICs ‘will take two Parliaments to deliver’.
Lecturers, teachers, instructors or those in a similar capacity (live consultation)
The possible repeal of NIC regulations for such workers who are self-employed for tax purposes.
Comments to: Philip.Hogan@hmrc.gsi.gov.uk
Consultation period: 7 October 2011–6 January 2012
Further guidance: www.lexisurl.com/CTCX4
Condoc: HMRC proposes a repeal of the regulations with effect from 6 April 2012.
Life insurance companies
A new corporate tax regime to comply with EU Solvency II Directive. Consultation closed 28 June, see www.lexisurl.com/p85T2.
Condoc: Legislation planned for FB 2012, effective from 1 January 2013.
Machine games duty
The design characteristics of the new duty. Consultation closed 26 July, see www.lexisurl.com/LemH4.
Condoc: Legislation planned for FB 2012.
Manufactured overseas dividends
HM Treasury announced on 15 September that FB 2012 would block an avoidance scheme with effect from that date.
Autumn statement: The government ‘will put beyond doubt that [MODs] cannot be used to obtain repayment or set off of income tax that the Exchequer does not receive’.
Money laundering
Proposed changes to the Money Laundering Regulations 2007. Consultation closed 30 August, see www.lexisurl.com/wCHqo.
Condoc: ‘Subject to final decisions we would anticipate any legislative changes adopted to come into effect in 2012.’
Mutual assistance
Draft regulations to give effect to the new EU Mutual Assistance in Recovery Directive, Council Directive 2010/24/EU. Consultation closed 11 November, see www.lexisurl.com/OXFkh.
Condoc: The UK is obliged to transpose the Directive by 31 December 2011.
Non-domiciled individuals
Reform to encourage non-doms to invest and do business in the UK, while ensuring that ‘they make a greater tax contribution, especially when they have been resident in the UK for many years’. Consultation closed 9 September, see www.lexisurl.com/R6U5n.
Condoc: Legislation planned for FB 2012.
Northern Ireland
Possible steps to accelerate the 'rebalancing' of the Northern Ireland economy through the tax system, including allowing Northern Ireland to vary corporation tax rates. Consultation closed 8 July, see www.lexisurl.com/lGKUk.
Condoc: ‘The government proposes to consider establishing a high-level consultation group involving representatives from the private sector and others in Northern Ireland.’
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 closed 2 August, see www.lexisurl.com/gWRAX.
Condoc: ‘Responses to this document will inform whether or not to recommend to Ministers proposals for amending the current gas valuation rules.’
Autumn statement: No statement regarding valuation rules, but the Treasury confirmed that, as announced in July, the annual rate of the ring fence expenditure supplement will be increased from 6% to 10%.
Patent Box
A preferential tax regime from April 2013 for profits arising from patents. Consultation closed 2 September, see www.lexisurl.com/KCXzN.
Condoc: Legislation planned for FB 2012.
Autumn statement: Draft legislation will be published on 6 December.
PAYE: Real Time Information (live consultation)
Draft amendments to legislation in readiness for the introduction of RTI.
Comments to: pa.harris@hmrc.gsi.gov.uk
Consultation period: 14 November 2011–9 January 2012
Further guidance: www.lexisurl.com/xHkQX
Condoc: FB 2012 will include a new power enabling HMRC to require employers to give certain information about payments of salaries etc to their banks, and for the banks to pass that information to HMRC.
PAYE Pooling (live consultation)
A possible change to allow closely connected employers to be treated as a single entity for PAYE purposes.
Comments to: toni.mpario@hmrc.gsi.gov.uk
Consultation period: 24 October 2011–15 December 2011
Further guidance: www.lexisurl.com/5rLex
Condoc: Responses will inform the decision as to ‘whether PAYE Pooling should be taken forward’.
Penalties: simplification of regulatory penalties
The first of two consultations in the final stage of the ‘Review of Powers’ reforms of penalties. Consultation closed 9 September, see www.lexisurl.com/zi07y.
Condoc: ‘A full response document will be published. HMRC will prepare a further consultation with detailed proposals for a new penalty framework.’
Pension schemes: employer asset-backed contributions
Limiting tax relief available to employers making asset-backed contributions to defined benefit pension schemes. Consultation closed 16 August, see www.lexisurl.com/XWUPZ.
Condoc: Legislation planned for FB 2012.
Autumn statement: This change will take effect from 29 November 2011, when draft legislation was published.
Personal tax administration (live consultation)
Modernising the administration of the personal tax system to make it more transparent and accessible.
Comments to: PTAdministration.responses@hmrc.gsi.gov.uk
Consultation period: 14 November 2011–24 February 2012
Further guidance: www.lexisurl.com/0fL9m
Condoc: Several reforms are proposed or in progress.
Qualifying time deposits
New rules for qualifying time deposits. Consultation closed 31 July, see www.lexisurl.com/Yzsvm.
Condoc: Interest from QTD accounts opened from 6 April 2012 will fall within tax deduction at source rules.
Real estate investment trusts
Informal consultation closed 10 June, see www.lexisurl.com/KObri.
HM Treasury said following consultation that legislation was planned for FB 2012.
Reliefs: abolition
Consultation on the abolition of 36 tax reliefs, as identified by the Office for Tax Simplification. Consultation closed 31 August, see www.lexisurl.com/DerlD.
Condoc: Legislation planned for FB 2012 for ‘most of the reliefs’.
Remote gambling
The case for amending the taxation regime for remote gambling. Consultation closed 30 November, see www.lexisurl.com/sceA8.
Condoc: ‘If, following this review, the government decides to proceed with reform, a formal consultation would then be carried out as part of [consultation] stage 2 ...’
Research & development tax credits
Proposals to simplify the R&D tax credits and make them more effective. Consultation closed 2 September, see www.lexisurl.com/7qg3j.
Condoc: Legislation planned for FB 2012.
Autumn statement: Draft legislation will be published on 6 December.
Residence: statutory definition
The detail of a statutory definition of tax residence for individuals. Consultation closed 9 September, see www.lexisurl.com/4ZtMX.
Condoc: Legislation planned for FB 2012.
Tax agents: dishonest conduct
Proposals allowing HMRC to obtain penalise dishonest tax agents. Consultation closed 16 September, see www.lexisurl.com/K3DM2.
Condoc: Any changes ‘might be introduced’ through FB 2012.
Tax agents: relationship with HMRC
The longer term vision for HMRC’s engagement with tax agents. Consultation closed 16 September, see www.lexisurl.com/JG0VL.
Condoc: ‘HMRC seeks views on the proposals and options ... and the scope and pace of any changes in the period of the current spending review through to April 2015 and beyond.’
Tax treaties anti-avoidance
Measures to deny relief or exemption from UK tax where a claim is made under a double tax agreement and arrangements have been made in relation to the claim to avoid UK tax.
Consultation withdrawn.
Unauthorised unit trusts
Exploring ways of simplifying taxation of unauthorised unit trusts and their investors to reduce administrative burdens and remove avoidance opportunities. Consultation closed 30 September, see www.lexisurl.com/l88xM.
Condoc: ‘The intention is to make an interim announcement on progress at Budget 2012. There will be a further consultation on any proposed draft legislation in Autumn 2012 with a view to introducing legislation in [FB 2013] at the earliest.’
VAT: cost-sharing exemption
Options for implementing the exemption for charities etc wishing to make efficiency savings by working together. Consultation closed 30 September, see www.lexisurl.com/9JE9O.
Condoc: ‘A summary of responses will be published in the Autumn.’
Autumn statement: The government will introduce a VAT exemption for services shared between VAT exempt bodies, including charities and universities.
VAT: groups
How best to legislate concession ESC 3.2.2 placing a cap on the value of a tax charge required within VAT groups. Consultation closed 3 August, see www.lexisurl.com/NAUlJ.
Condoc: Legislation planned for FB 2012.
VAT: imported road vehicles
A new on-line vehicle notification system to tackle fraud. Consultation closed 31 August, see www.lexisurl.com/oc3HN.
Condoc: Legislation planned for FB 2012.
VAT: online
Mandation of online filing of returns and electronic payments from April 2012 for traders with turnover under £100,000, and introduction of an enhanced online service for VAT registration, deregistration and notification of changes. Consultation closed 31 October, see www.lexisurl.com/7gMWe.
Condoc: ‘Subject to Ministerial approval, a summary of responses will be published on the HMRC website ... HMRC proposes that from 1 April 2012 for VAT registered businesses with a turnover below £100,000 it will be compulsory to file VAT returns online and make electronic payment of any VAT due. In support of the digital by default agenda, online will also become the default channel for all businesses for VAT registration, deregistration and changes to registered details but will not be mandated at this stage.’
