On 26 June, the government tabled the following amendments and new clauses to Finance Bill 2013.
UK REITs investing in other UK REITs: amendments to Schedule 18, to ensure that profits of a property rental business do not include amounts attributable to capital allowances and other tax adjustments for the purposes of the new exemption for UK REITs investing in other UK REITs.
Restriction on deduction of liabilities for IHT purposes: amendments to Schedule 34, to clarify some of the provisions and change the commencement with respect to liabilities in relation to relievable property.
Employee share schemes: amendments to Schedule 2, which aim to confirm HMRC’s current application of the rules for tax-advantaged employee share schemes where company events involving ‘general offers’ take place;
Qualifying insurance policies: amendments to Schedule 9, which widen HMRC’s powers in relation to the new premium limit on qualifying insurance policies.
IHT domicile election: amendments to Clause 175, which will allow UK-domiciled individuals to make an IHT election for a past period where they were not UK-domiciled. The amendments will also allow a retrospective election following divorce;
Bank levy: a new clause to confirm that the bank levy definition of ‘high quality liquid assets’ mirrors the regulatory definition of assets eligible for inclusion in a firm’s regulatory liquid assets buffer.
Restrictions on interim payments of tax during court proceedings: a new clause which will restrict the power of a court to grant a repayment of tax where litigation on a point of law has yet to be finally determined. This measure, which brings the court rules on interim payments more closely into line with the tribunal rules, took effect from 26 June 2013.
Targeted loss-buying rules: Two new clauses, introducing new schedules which contain three separate rules for inclusion in CAA 2001 and CTA 2010 to prevent ‘loss-buying’. These anti-avoidance rules were announced at Budget 2013 and the schedules then published for consultation between 28 March and 2 May. The schedules are now being introduced to the Finance Bill, with some relaxations made. A technical note on the revised draft legislation of the corporation tax ‘targeted loss-buying’ rules has been published. This note contains the revised draft legislation tabled for addition to the Finance Bill on 26 June and a summary of consultation responses to the original draft published in March. Certain aspects of the rules have been relaxed, including a ‘just and reasonable’ test for bringing deductible amounts into account, a clearer rule for group relief and an order of priority for how the rules interact. HMRC has provided guidance on how it will interpret the new rules in light of these changes.
On 26 June, the government tabled the following amendments and new clauses to Finance Bill 2013.
UK REITs investing in other UK REITs: amendments to Schedule 18, to ensure that profits of a property rental business do not include amounts attributable to capital allowances and other tax adjustments for the purposes of the new exemption for UK REITs investing in other UK REITs.
Restriction on deduction of liabilities for IHT purposes: amendments to Schedule 34, to clarify some of the provisions and change the commencement with respect to liabilities in relation to relievable property.
Employee share schemes: amendments to Schedule 2, which aim to confirm HMRC’s current application of the rules for tax-advantaged employee share schemes where company events involving ‘general offers’ take place;
Qualifying insurance policies: amendments to Schedule 9, which widen HMRC’s powers in relation to the new premium limit on qualifying insurance policies.
IHT domicile election: amendments to Clause 175, which will allow UK-domiciled individuals to make an IHT election for a past period where they were not UK-domiciled. The amendments will also allow a retrospective election following divorce;
Bank levy: a new clause to confirm that the bank levy definition of ‘high quality liquid assets’ mirrors the regulatory definition of assets eligible for inclusion in a firm’s regulatory liquid assets buffer.
Restrictions on interim payments of tax during court proceedings: a new clause which will restrict the power of a court to grant a repayment of tax where litigation on a point of law has yet to be finally determined. This measure, which brings the court rules on interim payments more closely into line with the tribunal rules, took effect from 26 June 2013.
Targeted loss-buying rules: Two new clauses, introducing new schedules which contain three separate rules for inclusion in CAA 2001 and CTA 2010 to prevent ‘loss-buying’. These anti-avoidance rules were announced at Budget 2013 and the schedules then published for consultation between 28 March and 2 May. The schedules are now being introduced to the Finance Bill, with some relaxations made. A technical note on the revised draft legislation of the corporation tax ‘targeted loss-buying’ rules has been published. This note contains the revised draft legislation tabled for addition to the Finance Bill on 26 June and a summary of consultation responses to the original draft published in March. Certain aspects of the rules have been relaxed, including a ‘just and reasonable’ test for bringing deductible amounts into account, a clearer rule for group relief and an order of priority for how the rules interact. HMRC has provided guidance on how it will interpret the new rules in light of these changes.