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Tax update: clauses for the 2013 Finance Bill.

Subscribers - click here for your Adviser's Update to Finance Bill 2013 for your more detailed version of this update which also tracks pre-announced measures.

Finance Bill 2013 and tax update

The Chancellor announced several new tax measures which will be of interest SME owners and tax advisers in his Autumn Statement last week.

NEW key announcements

Key measures as previously announced which will apply from April 2013

Measures from 2014

Measures dropped following consultation

Measures on hold (for now)

Biggest surprises

Personal Allowances & tax rates

From April 2013

From April 2014 and later

See Tax rates and allowances

Universal credits

Overpayment relief

NEW measure: limiting the effect of prevailing practice and timing of loss mistakes

From 6 April 2013

Abolition of income tax relief on patent royalties

Pensions: family pension contributions

From April 2013

Pensions: higher rate restrictions

From April 2014

Small business tax reporting

NEW: from April 2013

Corporation tax

From April 2013

From April 2014

Disincorporation relief for small companies

From 1 April 2013 to 31 March 2018

See Disincorporation relief

Inheritance tax

IHT: non-dom spouses

From April 2013

Capital Gains Tax (CGT)

From April 2013:

CGT charge on disposals to offshore non-natural person

Employment taxes

RTI: real time information penalties

From 6 April 2014

See Tax penalties: RTI (Real Time Information)

Employee shareholder status CGT exempt shares

Share schemes

Enterprise Management Initiatives (EMI)

From April 2012:

See Enterprise Management Incentives (EMIs)

Employer supported childcare

Pensions – employer contributions

Capital allowances

Plant and machinery – Annual Investment Allowance

See AIA: rules where there is a change of rate

Energy Saving Plant and Machinery

See Enhanced Capital Allowances (ECA)

R & D and media

Tax relief for qualifying high-end television production, animation production and video game production

Land and property

Annual residential property tax

See Annual tax property tax (ARPT)

Lease premium relief: effective duration of a lease

Stamp Duty Land Tax

See Stamp Duty Land Tax: rates & reliefs

VAT
Road fuel scale charges

Reduced rate energy saving materials (ESM) in charity buildings

Residence, domicile and offshore

Statutory residency test
From April 2013

See Statutory Residence Test

The remittance basis

See Remittance basis (overseas income)

UK-Switzerland agreement: remittance basis

See UK/Swiss Agreement

US: FATCA

Exemption from UK taxation for foreign sports stars

Attributions of gains to members of non-resident companies

Transfer of assets abroad

Disclosure of Tax Avoidance Schemes – DOTAS

Tax Agents: civil penalties for dishonest conduct

Apply from 1 April 2013

General anti-abuse rule (GAAR)

As announced in Budget 2012, legislation to target abusive tax avoidance schemes.
The GAAR has effect in relation to any tax arrangements entered into on or after the date of Royal Assent to Finance Bill 2013 (late July 2013).

HMRC’s guidance about the GAAR is divided into 3 parts, this is subject to consultation:

Consultation closes in February 2013.

Adminstration

Withdrawing a notice to file a self assessment return

HMRC will be given a statutory power relieving individuals, partnerships and trustees of completing a SA return if HMRC agree they no longer need to be in SA for that year. Seems amazing that they never required this before.