Developments of interest this month are outlined below.

• The Scottish Government set out their Draft Budget for 2016/17, including the proposed rate for the Scottish Rate of Income Tax in December 2015. The Scottish rate of income tax (SRIT) will be 10% for 2016/17. Therefore there will be no change to the overall rate of income tax paid by Scottish taxpayers in 2016/17. For those taxpayers, the UK income tax rates on non-savings and non-dividend income will be reduced by 10% and they will pay SRIT of 10% on top of that
• Following consultation in 2015, the final regulations setting out the standard allowances for the purposes of the new exemption have been published. The new business expenses exemption takes effect from 6 April 2016
• Final regulations to allow HMRC to secure payment of tax and tax credit debts directly from debtors’ bank and building society accounts have been published. Draft regulations setting out the parameters in which banks and building societies may opt to pass on an administrative charge to debtors for processing a Direct Recovery of Debt ‘hold’ notice have also been published
• The Government has announced the appointment of the new Chair of the Office of Tax Simplification. Membership of the Small Companies project consultative committee has also been announced. Legislation providing for the permanent establishment of the Office of Tax Simplification in statute has also been published. This specifies its functions, and makes certain provisions for the governance and operation of the OTS
• A list of upcoming tax tribunal appeal hearings, including details of previous cases has been published
• Factsheet CC/FS1b provides general information about checks by compliance centres.
• Some updated VAT documents have been published: VAT Notice 701/14: food and VAT: application for VAT refund by a business person not established in the community (VAT65A)
• The most recent Pension schemes newsletter is available
• An updated list of overseas corporate lenders who are recognised passport holders under the Double Taxation Treaty Passport Scheme register is available
• Updated helpsheet HS227 (Losses) is available
• The latest Employer Bulletin and Trusts and Estates newsletters are available
• Indexation allowance figures for 2015 are now available together with historical data
• Details of how to apply for a certificate of residence in the UK are available
• A paper setting out the criteria HMRC will use to identify vulnerable customers in relation to direct recovery of debt legislation is available
• Various forms and guidance relevant to tax avoidance schemes have been updated:– Forms to disclose tax avoidance schemes, Tax Avoidance schemes: employers providing a Scheme Reference Number to an employee (AAG7), Tax avoidance schemes: notification of scheme reference number (AAG6), and Disclosure of tax avoidance schemes: guidance
• HMRC has updated the list (List 3) of professional bodies and learned societies, approved by HMRC for the purpose of Section 344 ITEPA 2003 (allowable deductions from earnings for fees and subscriptions paid to professional bodies/learned societies).
• Some forms relevant to income tax have been published:– Income Tax: repayment claim when small pension taken as a lump sum (P53) and Income Tax: claim to personal allowances and tax repayment by an individual not resident in the UK (R43)
• The General Anti-Abuse rule guidance has been updated
• The detailed guidance notes for charities have also been updated in addition to guidance on how to claim back tax on donations