As is now tradition after the Autumn Statement, draft Finance Bill 2013 clauses were published in December together with explanatory notes and other tax updates including responses to a range of consultations on different matters. The closing date for comments is Wednesday 6 February 2013.

The draft clauses include measures previously announced, such as draft legislation to give effect to the cap on income tax reliefs announced at Budget 2012, and legislation to give effect to the new taxation measures announced as part of last December's Autumn Statement, covered in the December issue of tax.point.

A useful summary document on the Finance Bill draft clauses is available at http://www.hmrc.gov.uk/budget-updates/11dec12/old2012.pdf

As announced in Budget 2012, legislation is to be introduced to target abusive tax avoidance schemes by introducing a General Anti Abuse Rule (GAAR). Following consultation, a number of amendments have been made to the draft legislation to reflect the comments received. The Government has also published for consultation, HMRC's guidance about the GAAR which is divided into 3 parts.

The draft clauses contain detailed draft legislation on the new Annual Residential Property Tax (to be levied on “non-natural” persons) and changes to the Stamp Duty Land Tax rules announced at Budget 2012, including the 15% higher rate charge for certain transactions.

Legislation will also be introduced in Finance Bill 2013 to put the rules which 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.

HMRC will shortly publish draft guidance to assist individuals on the application of the statutory residence test.

Revisions to the Disclosure of Tax Avoidance Schemes were consulted on over summer 2012 as part of the ‘Lifting the Lid on Tax Avoidance Schemes’ consultation. Finance Act 2013 will contain two powers for secondary legislation which will be consulted on in early 2013 alongside other changes. The Government intends to implement all the secondary legislation on a common date, later in 2013.

Details of all rates and allowances for 2013-14 have also been published at http://cdn.hm-treasury.gov.uk/as2012_tax_and_tax_credit_rates_and_thresholds_051212.pdf