L-day report: draft Finance Bill 2020/21 provisions

The government has published draft provisions to be included in Finance Bill 2020/21 (FB 2020/21) together with accompanying explanatory notes other supporting documents and consultations. The consultation on the draft legislation will run until 15 September 2020. FB 2020/21 is expected to be introduced to Parliament in autumn 2020 (after the Autumn Budget) and to receive royal assent in spring 2021.

The majority of the provisions were previously announced but there were some new measures relating to:

• the corporate interest restriction (CIR): two further technical amendments have been published both of which seek to ensure these rules work as intended; and
• termination payments and post-employment notice pay (PENP).

There are some provisions which apply with immediate or retrospective effect including: 

• the two technical amendments to the CIR rules one of which takes effect from 21 July 2020 and the other from 1 April 2017;
• a new relief from the annual tax on...