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Finance Bill 2013 receives royal assent

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19th Jul 2013
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A new general anti-avoidance rule (GAAR), a statutory residence test to determine an individual's tax residence and legislation to strengthen a tax agreement with Switzerland are among the main tax measures in the Finance Bill 2013.

The Finance Bill, which received royal assent on 17 July includes:

General anti-abuse rule (GAAR)

As announced in Budget 2012, legislation will be introduced to target abusive tax avoidance schemes. Following consultation, a number of amendments have been made to the draft legislation to reflect the comments received. 

Statutory residence test

Rules that determine an individual's tax residence on a statutory basis. The new statutory residence test will come into force from the start of the 2013-14 tax year.

The legislation will also provide for a tax year to be split into a UK part and an overseas part in certain circumstances and contain new rules for the taxation of certain income and gains arising during a period of temporary non-residence.

UK-Switzerland agreement: remittance basis

Legislation will be introduced to ensure that the policy objectives behind the original agreement are delivered in full.

These provisions will mean that appropriate mechanisms are in place so that levies received by HMRC under the agreement are not treated as taxable remittances themselves where they are made by or on behalf of non-UK domiciled individuals.

The changes will take effect from the date that the agreement comes into force which is expected to be 1 January 2013.

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