Consultation update: Expenses, CGT and tax evasion

The government has launched several new consultations since we published our first consultation update on 24 July.

It has invited views on the capital gains tax concession D33, loan relationships, travel and subsistence expenses, strengthening the tax avoidance disclosure rules, exchange of information, pensions, a minimum excise tax and new measures to tackle offshore tax evasion.

There are now 33 live tax-related consultations, which are summarised briefly below in alphabetical order of topic. Links are provided to the consultation papers.

HMRC invited comments on draft legislation on registered pension schemes and the annual allowance charge by today, 27 August, and the consultation on inheritance tax and trusts closes on 29 August. The remaining consultations listed here close in September or October.

See also:

New offence could criminalise taxpayer error, 21 August

New DOTAS proposals lead consultation surge, 8 August

LIVE CONSULTATIONS

Annual tax on enveloped dwellings (ATED)

Annual tax on enveloped dwellings: reducing the administrative burden for business

Proposals to reduce the administrative burden for businesses within ATED, amending filing requirements and reducing the number of returns that “genuine businesses” have to file to claim a relief (HMRC). Launched 22 July; Closes 16 September

Capital gains tax

Legislating extra-statutory concession D33 (NEW)

Proposals to increase to £1m the limit on the amount of compensation automatically exempt, with amounts in excess of £1m chargeable to CGT, and to legislate the relief for personal compensation or damages (HMRC). Launched 31 July; Closes 15 September

Construction industry scheme

Improving the operation of the construction industry scheme (CIS)

Options to improve operation of the CIS for smaller businesses and to introduce mandatory on-line CIS filing for contractors (HMRC). Launched 27 June; Closes 22 September

Corporation tax

[UPDATE 8 September: OECD Base erosion and profit shifting project, Action 11]

The OECD invited comments on methodologies to collect and analyse data on base erosion and profit shifting (BEPS) and actions required to address it (OECD) Launched 4 August; Closes 19 September

Loan relationships and derivative contracts (NEW)

Draft regulations amending regulations dealing with the tax treatment of loan relationships and derivative contracts to take account of changes in accounting standards (HMRC). Launched 7 August; Closes 12 September

Employees

Travel and subsistence review (NEW)

A review of the rules underlying the tax treatment of travel and subsistence expenses, announced at Budget 2014 in response to an Office of Tax Simplification report on employee benefits and expenses (HM Treasury). Launched 31 July; Closes 23 October

Internationally mobile employees and earnings related securities

A further consultation on draft legislation to effect changes recommended by the Office of Tax Simplification (OTS) in relation to national insurance contributions on employment-related securities income earned by internationally mobile employees (HMRC). Launched 24 July; Closes 16 October

New employee shareholding vehicle

The case made by the OTS for introduction of an employee shareholding vehicle “to enable companies (mostly, but not exclusively unquoted) to manage their employee share arrangements and create a market for employees’ shares” (HMRC and HM Treasury). Launched 17 July; Closes 10 October

Office of Tax Simplification review of unapproved share schemes: marketable security

The OTS’s recommendation that the government introduce the concept of the “marketable security” into the tax rules for employment-related securities. Broadly, individuals would be able to “choose whether the tax charge … arises at the time [the securities] are acquired or, if different, at the time at which they can be sold for cash” (HMRC). Launched 17 July; Closes 10 October

Employee benefits and expenses: trivial benefits exemption

Introduction of an exemption for “trivial” benefits in kind, such as small gifts given to employees (HMRC and HM Treasury). Launched 18 June; Closes 9 September

Remuneration practices: call for evidence

Improving the government’s understanding of remuneration practices in order to inform future tax policy changes (HM Treasury). Launched 18 June; Closes 9 September

Employee benefits and expenses: exemption for paid or reimbursed expenses

Replacing dispensations for reporting of non-taxable expenses with an exemption for expenses paid or reimbursed by employers (HMRC and HM Treasury) Launched 18 June; Closes 9 September

Employee benefits and expenses: abolition of the £8,500 threshold for lower paid employment and form P9D

Identifying groups of employers, employees or “office holders” that would be affected by abolition of the £8,500 threshold for benefits in kind and what form of protection should be afforded to such groups (HMRC and HM Treasury). Launched 18 June; Closes 9 September

Employee benefits and expenses: real time collection of tax on benefits in kind and expenses through voluntary payrolling

The design and scope of a voluntary system of payrolling for benefits in kind (HMRC and HM Treasury). Launched 18 June; Closes 9 September

Excise duties

Minimum excise tax (NEW)

Whether a minimum excise tax could help “support tobacco policy in its role to protect future revenues and reduce smoking rates” (HM Treasury). Launched 26 August; Closes 7 October

HMRC powers

Tackling offshore tax evasion: a new criminal offence (NEW)

The design of a new a strict liability criminal offence. See AccountingWEB: New offence could criminalise taxpayer error (HMRC). Launched 19 August; Closes 31 October

Tackling offshore tax evasion: strengthening civil deterrents (NEW)

The design of “tailored sanctions to more effectively deter tax non-compliance linked to income and gains arising and assets held offshore” (HMRC). Launched 19 August; Closes 31 October

Strengthening the tax avoidance disclosure regimes (NEW)

Proposals to strengthen and improve the DOTAS regime and update the VAT disclosure regime, and the possible introduction of protection for whistle-blowers providing information about potential avoidance (HMRC). Launched 31 July; Closes 23 October

Direct recovery of debts (HMRC) Closed

Implementing agreements under the global standard on automatic exchange of information (NEW)

Draft legislation to implement agreements to be entered into between the UK and overseas jurisdictions to adopt the Common Reporting Standard on Financial Account Information (CRS) (HMRC). Launched 31 July; Closes 22 October

Sharing and publishing export data for public benefit

The potential benefits, risks and safeguards needed in connection with a proposal to publish data relating to exports on HMRC’s website uktradeinfo.com (HMRC). Launched 25 June; Closes 19 September

Inheritance tax

Inheritance Tax: exemption for emergency service personnel

Extension of the IHT exemption for armed forces personnel who die on active service to all emergency service personnel who die in the line of duty, or whose death is hastened by injury incurred in the line of duty (HMRC). Launched 23 July; Closes 15 October

Inheritance tax: a fairer way of calculating trust charges

Simplifying calculation of IHT charges on trusts either at 10-yearly intervals or when assets are transferred out of the trust, and “fairer” allocation of the nil-rate band (HMRC). Launched 6 June; Closes 29 August

National minimum wage

National minimum wage: draft consolidated regulations

Whether draft regulations consolidating the National Minimum Wage Regulations 1999 and the subsequent amending regulations are clear and workable. (Department for Business, Innovation & Skills). Launched 22 July; Closes 15 September

Oil and gas

Maximising economic recovery: consultation on a cluster area allowance

A new cluster area allowance to “support investment in ultra-high pressure, high temperature oil and gas projects and to encourage exploration in surrounding areas” (HM Treasury). Launched 23 July; Closes 30 September

Review of the oil and gas fiscal regime: a call for evidence

How the tax regime can “continue to encourage investment in the North Sea and help maximise the country’s oil and gas resources for the UK, whilst ensuring the nation continues to receive a fair share of profits” (HM Treasury). Launched 14 July; Closes 3 October

Pensions reform

Draft Taxation of Pensions Bill (NEW)

Draft legislation to enact changes to pension tax rules, announced at Budget 2014, to give individuals greater flexibility accessing pension savings (HMRC). Launched 6 August; Closes 3 September

Registered pension schemes and annual allowance charge (NEW)

Draft legislation to ensure that changes made by Finance Act 2011 to the annual allowance charge provisions in Finance Act 2004 work as intended (HMRC). Launched 29 July; Closes 27 August

Retirement reforms and the guidance guarantee

Proposed standards for delivery of the “guidance guarantee” entitling holders of “defined contribution” pensions to free, impartial guidance at retirement. The Financial Conduct Authority’s consultation was launched as the Treasury published its response to the consultation Freedom and choice in pensions, outlining a “new tax system” and a proposed Pensions Tax Bill (Financial Conduct Authority). Launched 21 July; Closes 22 September

Personal allowances

Restricting non-residents’ entitlement to the UK personal allowance

Whether the UK should take steps to restrict non-residents’ entitlement to the personal allowance. Most countries have a personal allowance but “few are as generous as the UK”, the Treasury said, and “many other countries” restrict entitlement for non-residents (HM Treasury). Launched 17 July; Closes 9 October

Social investment tax relief

Social investment tax relief: enlarging the scheme

The most appropriate and effective way to increase the investment limit and bring in a wider range of investors while “keeping the relief well targeted and effective and minimising opportunities for tax avoidance” (HM Treasury). Launched 10 July; Closes 18 September

Stamp duty land tax

Stamp duty land tax rules for property investment funds

The merits of introducing an SDLT seeding relief for property authorised investment funds and co-ownership authorised contractual schemes (HMRC and HM Treasury). Launched 18 July; Closes 12 September

VAT

VAT mini one stop shop (HMRC) Closed

VAT relief on substantially and permanently adapted motor vehicles for disabled wheelchair users

Reform of VAT zero rate relief on motor vehicles adapted for use by a disabled wheelchair user, in the light of “continuing abuse [of the relief] and uncertainty over the law” (HMRC). Launched 30 June; Closes 19 September

VAT: Prompt payment discounts

VAT invoicing and accounting arrangements in relation to prompt payment discounts taken up on supplies made on or after 1 April 2015, when a change to UK legislation will take effect (HMRC). Launched 17 June; Closes 9 September

Venture capital schemes

Tax-advantaged venture capital schemes: ensuring continued support for small and growing businesses

Ensuring that the tax-advantaged venture capital schemes continue to remain in line with updated EU state aid guidelines. Options include measures to ensure that schemes remain well targeted “to encourage investment into riskier companies” (HMRC and HM Treasury). Launched 10 July; Closes 18 September

Comments

We all know that there is no

redboam | | Permalink

We all know that there is no equity in tax law but removing personal allowances from non-resident British Citizens when tax payers are coughing up the not inconsiderable costs of benefits and public services to immigrants, thanks to successive governments' failures in controlling it, appears to be pushing the envelope a bit too far.

johnjenkins's picture

Will that

johnjenkins | | Permalink

also apply to ex Scot pats (or whatever they may be called) if they get independence.

JAADAMS's picture

CIS Operation Consultation    1 thanks

JAADAMS | | Permalink

Just so everyone is aware.... Aacweb will be considering many of the consultations listed and be writing articles giving their view on the proposals, plus incorporating any comments members make in a consultation response on members behalf.

Starting with the CIS one.