Finance Bill 2009 was published on 30 April. The Bill contains the draft legislation for the proposals announced by the Chancellor in his Pre Budget Report on 24 November 2008 and in his Budget on 22 April 2009 (see next story for more information).

In particular, the Bill provides for the following:

• a temporary extension to the income tax and corporation tax rules for carrying back trade losses.
• a temporary first-year capital allowance at the rate of 40 per cent for a period of one year for spending by businesses on most plant and machinery that would normally qualify for a writing-down allowance at the 20 per cent rate.
• exemption on foreign company distributions. The rules for distributions received by small companies are distinct from the rules for medium and large companies, but in each case the result is that the great majority of distributions will be exempt from corporation tax.

The Financial Secretary announced that there would be further consultation on debt cap legislation and confirmed that the proposed legislation will be posted on HMRC's website prior to being introduced by way of amendment when the Bill reaches Committee.

Full details of the published Finance Bill 2009 are available at http://www.hmrc.gov.uk/finance_bill2009/index.htm