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In brief: FB 2014; venture capital schemes; childcare accounts; prescription drugs; late payments; guidance

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Finance Bill update

Parliament’s 2013/14 session has ended and the 2014/15 session will begin on 4 June 2014. The Finance (No.2) 2013/14 has been carried over to the 2014/15 session and it will become the first Finance Bill of the 2014/15 session with the title changing to Finance Bill 2014/15. The 10th sitting of the Public Bill Committee will be on 10 June.

Venture capital schemes: restrictions for renewable subsidies

HMRC has published guidance providing further detail on the change announced at Budget 2014 to prevent companies already benefiting from renewables obligation certificates and/or the renewable heat incentive scheme from receiving tax relief under the VCT, EIS or SEIS schemes. Legislation will be introduced at Finance Bill report stage and will apply to future investment from the date of royal assent. The government intends to consult in the summer on a more general exclusion for investment in certain low-risk activities that benefit from income guarantees via government subsidies.

Tax-free childcare accounts

The government is consulting until 27 June 2014 on options to deliver tax-free childcare accounts via the public sector, either through national savings and investments or HMRC, under the new tax-free childcare scheme announced at Budget 2013 for introduction in autumn 2015. This follows the consultation held in late 2013 on the design of the scheme and the responses published in March 2014, which confirmed the cap against which eligible parents can claim 20% support will be set at £10,000 per year for each child. The earlier consultation explored options for provision of accounts through the private sector.

Zero-rating of drugs prescribed by physiotherapists and podiatrists

Revenue & Customs Brief 21/2014 explains that, with effect from 21 May 2014, UK VAT law permits the zero-rating of the dispensing of drugs prescribed by physiotherapists and podiatrists. This is as a result of changes introduced by the Value Added Tax (Drugs and Medicines) Order, SI 2014/1111.

Interest on late payments under PAYE and CIS

The Finance Act 2009, sections 101 and 102 (Interest on Late Payments and Repayments) (Consequential Amendments) Order, SI 2014/1283, ensures that payments of interest associated with late payments of class 1 NIC and payments under the construction industry scheme will be not deductible in computing income profits or losses for tax purposes. Consequential amendments to primary legislation also ensure the correct provisions associated with interest are applied to cases where liability for a company’s NIC is transferred to the directors. The changes come into force on 20 May 2014.

HMRC guidance

New HMRC guidance is available from HMRC’s website, including:

  • DOTAS guidance (which has effect since 4 November 2013) reissued on 16 May 2014 to make minor corrections and update section 17 for dates for submission of AAG4 forms by employers under real time information;
  • when to contact HMRC for an update on an employment history request;
  • HMRC toolkits: tax agents and advisers calculating income tax losses and private and personal expenditure;
  • summary of pension news for the week ending 23 May 2014;
  • reporting offshore funds: the list has now been updated to include the funds that have entered the reporting fund regime as at 19 May 2014;
  • Notice 221 on inward processing, which replaces Notices 221 and 221A;
  • Customs information papers on export CPCs for end use, inward processing, outward processing relief, customs warehousing, temporary admission and processing under customs control; inward processing use of the INF 5; inward processing EX/IM customs procedure codes beginning with 11; and the requirement to register a general valuation document when using an earlier sales value.
Issue: 1218
Categories: News