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Finance Bill mystery

Finance Bill mystery

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Cross checking the draft Finance Bill published in December 2015 against the Finance (No 2) Bill published last month there are two measures which don't seem to be included.  Have I missed them, what happened to them?  Clause 43 in the draft bill concerned the new rules for deemed domicile following the switch from a 17 out of 20 residence rule to a 15 out of 20 rule and the new principle for persons born in the UK who were also UK domiciled at birth if the return back to the UK.  Measures supposed to be in place by 6 April 2017.  The other is Clause 48, VAT and energy saving materials, necessary because of of an ECJ ruling - was this effected by some other means.  Maybe I'm just getting old and tired but if anyone can shed some light I'd be grateful.

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By hedglen
04th Apr 2016 08:33

Non-Dom legislation

The Red Book (page 99) states that "the government will legislate all non-dom reforms in Finance Bill 2017"

 

I also assumed it would be in the Bill published last month. I hope the draft legislation is all correct when they put it through next year.

 

Sorry, can't help with the VAT question!

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By Paul Soper
04th Apr 2016 14:52

Indeed

There is a reference which is a bit more detailed in the OOTLAR I came across this morning - "

The government is undertaking a major reform to non-domicile taxation. As announced at Summer Budget 2015, from April 2017 non-UK domiciled individuals (non-doms) will be deemed UK domiciled for all tax purposes after they have been UK resident for 15 out of the past 20 tax years. Additionally, individuals who were born in the UK and who have a UK domicile of origin will revert to their UK domiciled status for tax purposes while resident in the UK. The government will also legislate to charge inheritance tax on all UK residential property indirectly held through an offshore structure from 6 April 2017. As set out at Summer Budget 2015, non-doms who have a non-UK resident trust set up before becoming deemed domiciled in the UK will not be taxed on income and gains retained in the trust. The government will legislate all non-dom reforms in Finance Bill 2017. Budget 2016 confirms that non-doms who become deemed-domiciled in April 2017 can treat the cost base of their non-UK based assets as being the market value of that asset on 6 April 2017. Individuals who expect to become deemed UK domicile under the 15 out of 20 year rule will be subject to transitional provisions with regards to offshore funds to provide certainty on how amounts remitted to the UK will be taxed. "

Clearly it is important for taxpayers to and their advisers to look at the proposed measures now even though it's not going to be in this year's bill but next years because this won't be repeated in the draft bill for 2017 next December it will only appear in the actual 2017 bill at the end of March - too late for constructive action.

The VAT mystery seems to have an answer too - or rather evidence of deliberate inaction, possibly because it may be possible to get a lower rate even though the ECJ ruled to the contrary following the more relaxed attitude to VAT rates evidenced by the change to the treatment of female sanitary products.

 

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Replying to Paul Crowley:
Portia profile image
By Portia Nina Levin
04th Apr 2016 15:08

You mean...

Paulsoper wrote:

female sanitary products.

... bloody tampons!

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By Paul Soper
04th Apr 2016 15:46

Wholly unnecessary!

If Portia were the lady she claims to be she would realise that there are  female sanitary products other than tampons and I must say that comment is beneath contempt!

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Replying to bernard michael:
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By Portia Nina Levin
04th Apr 2016 16:10

It was good enough for Cathy Newman...

Paulsoper wrote:

If Portia were the lady she claims to be she would realise that there are  female sanitary products other than tampons and I must say that comment is beneath contempt!

... of Channel 4 News!

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By SteveHa
04th Apr 2016 15:55

Not really unnecessary. GO himself referred to it as "The Tampon Tax" in his Budget speech.

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By Paul Soper
05th Apr 2016 15:58

Bloody Hell

It is not the word 'tampon" I'm objecting to - it's the schoolboy attempt at playground humour by adding an adjective...

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By Tim Vane
05th Apr 2016 16:03

I think Portia is confused. I don't think anybody buys second hand tampons, so the VAT implications of bloody tampons are moot.

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