Summertime and tax living ain’t easy
Despite it being the summer, there was no let-up in consultations launched by the current Government.
Consultations launched in recent weeks include:
The Government is considering extending the Inheritance Tax exemption for armed forces personnel who die whilst 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. Responses should be submitted by 15 October 2014.
This consultation relates specifically to liability for earnings-related National Insurance Contributions from employment related securities income earned by internationally mobile employees. Responses should be submitted by 16 October 2014.
In response to the Office of Tax Simplification’s January 2014 report on the tax treatment of employee benefits and expenses, ‘Review of employee benefits and expenses: second report’, the government announced at Budget 2014 that it intended to review the rules underlying the taxation of travel and subsistence expenses. This consultation is the first stage of that review.
In the first stage of the consultation the government wishes to improve its understanding of the commercial realities of travel and subsistence payments. Amongst other issues, the government intends to explore the circumstances in which employers pay travel and subsistence expenses (whether tax relievable or not); how tax influences these decisions; and the other factors which influence commercial decision making in this area.
In this stage the government also intends to discuss the framework within which it will develop any new principles to the underlying rules on travel and subsistence expenses. In particular the government wants to discuss what sort of payments should qualify for tax relief, who they should need to be paid by, to whom and in what manner – and whether tax relief for subsistence payments need be tied to the rules for travel. The government intends to report on this stage of the review at the Autumn Statement 2014.
This consultation seeks views on options to reduce the administrative burden for businesses within ATED with responses due by 16 September 2014.
ESC D33 covers a number of circumstances where a capital sum is received from a right of action. The concession was amended in January 2014 so that only the first £500,000 of a capital sum where there is no underlying asset was exempt and exemption for amounts in excess of this had to be made in writing to HMRC.
This consultation seeks views on introducing a limit of £1,000,000 exemption with amounts in excess of this liable to Capital Gains Tax. It also seeks views on legislating the relief given by ESC D33 for personal compensation or damages and indemnities. Responses are due by 15 September 2014.
This consultation contains proposals to further strengthen the Disclosure of Tax Avoidance Schemes and initial thinking about how the VAT Disclosure Regime might be updated. Responses are due by 23 October 2014.
This consultation considers a new cluster area allowance to encourage investment in ultra-high pressure, high temperature oil and gas fields. The new allowance builds recommendations for maximising economic production of oil and gas. It has been designed not only to support investment in technically challenging development projects, but also to encourage exploration in the surrounding areas. The allowance will reduce the tax on a portion of a company’s profits from 62% to 30% at current rates. Responses should be submitted by 30 September 2014.
This is a technical consultation to analyse amendments to the VAT Regulations arising as a consequence of the introduction of the Mini One Stop Shop. Responses were requested by end of August.
- Stamp Duty Land Tax (SDLT) rules for property investment funds
The above consultation seeks views to help the government assess the case for making changes to the SDLT treatment of the seeding of property authorised investment funds and the wider SDLT treatment of co-ownership authorised contractual schemes.
The consultation asks questions to better understand the property funds industry, the need for change, the likely response from the industry and the wider impact of the proposed changes. Proposals for how these changes could be implemented are included, if the decision is taken to introduce them, and views are sought on their potential design.
- Consultation on Tax-Free Childcare Payments regulations
HMRC has published two draft statutory instruments for external technical consultation in relation to the new Tax-Free Childcare scheme.
The first statutory instrument contains the detailed rules concerning eligibility for the scheme, and the second contains the detailed rules concerning the operation of the scheme. The commentary explains the technical contents of the regulations. Comments on the draft statutory instruments should be sent by 3 October 2014.
By way of reminder, the scheme will be based on a system of online childcare accounts into which eligible parents pay money towards their childcare costs, and the Government automatically tops up the amounts at a rate of 20p for every 80p paid in by the parent. This is subject to a maximum of £2,000 per child per year. The amounts held in the childcare accounts can only be used to pay for qualifying childcare.
- Restricting non-residents’ entitlement to the UK personal allowance
At Budget 2014 the government announced it would consult on whether entitlement to the UK Personal Allowance should be restricted for non-residents and how this might be done. This consultation, which closes on 9 October, is being used to help the government understand the impacts and feasibility of any change and to make a balanced decision as to the desirability of the proposed change.
