Measures previously announced in December 2010 for the 2011 Finance Bill include:

Personal tax

No changes to tax rates but new allowances and threholds for:

Employer supported childcare

New measures affect childcare vouchers and childcare schemes:

Furnished holiday lettings

See Furnished holiday letting: update for changes to

Gift aid


Corporate tax 

Associated companies

Legislation to ensure that companies are only held to be associated where the substantial commercial interdependence exists between them.

ESC C16 - winding up a company

See ESC C16: the end in sight?

This is not a Finance Bill measure, but a clump of existing Extra Statutory Concessions are due to be enacted by Treasury Order (that means by Statutory Instrument, which is secondary legislation). In the case of ESC C16 the existing concession is going to be completely changed, so that it will only apply when £4,000 or less will be distributed on striking off a company. As this is done by secondary legislation it appears that this will not be debated in parliament.

Capital allowances

From 2012:

Larger companies and foreign

Corporate capital gains simplification

Legislation is published to:


Academies VAT refund

Legislation will be introduced to allow academies to recover VAT on a similar basis to local authority maintained schools.

Business samples
Legislation will be introduced to ensure that where businesses provide samples of their products free of charge to individuals for marketing purposes, none of the samples are liable to VAT.


Group mismatches

Legislation will be introduced to ensure that groups of companies cannot use loan relationships or derivative contracts to generate profits or losses purely as a result of accounting asymmetries. An interim measure has been introduced with immediate effect to prevent tax losses from new schemes.

Loan relationships avoidance: derecognition
Legislation will be introduced to prevent the avoidance of corporation tax in respect of loan relationships and derivative contracts where amounts are not fully recognised for accounting purposes.

Disguised remuneration
New rules to ensure that remuneration is not avoided or deferred through the use of trusts or other intermediaries, including Employee Benefit Trusts and Employer Financed Retirement Benefit Schemes (EFRBS).

Legislation will be introduced in Finance Bill 2011 to ensure that where a third party makes provision for what is in substance a reward or recognition or loan in connection with the employee’s employment, an income tax charge arises. This will be based on:

For example, where the asset in question is transferred or otherwise made available for an employee’s use and benefit as if the employee owned the asset. The amount concerned will count as a payment of employment income and the employer will be required to account for PAYE accordingly. 

Functional currency switch schemes

Legislation will be introduced to counter avoidance involving changes in the functional currency of an investment company. At the same time, the legislation will also introduce the option for investment companies to be able to elect for a functional currency for tax purposes other than that in the accounts.

VAT supply splitting

Legislation will be introduced to cancel the tax advantage currently enjoyed by businesses that supply services and arrange for different suppliers to supply printed matter which is connected to those services. 

Powers consultations:

Other proposed Finance Bill 2011 measures