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Other Finance Bill report stage amendments

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In addition to the new clause and schedule for the public interest business protection tax, the government had also put forward the following amendments for report stage:

  • New clause and schedule on freeports tax sites: to give HMRC powers to vary the circumstances in which certain tax reliefs are available in relation to freeports. These powers are intended to give the treasury greater flexibility to change (including to remove) the circumstances in which expenditure is treated as qualifying expenditure for the purposes of the various reliefs, including first-year plant and machinery allowances, the enhanced structures and buildings allowance, and relief from SDLT.
  • Cl 36 (residential property development activities: ‘interest in land’): two changes are made as follows:
    • The definition of ‘excluded interests’ is qualified to make sure that, where a company has a licence to use or occupy land, that interest is not an excluded interest if it is granted as a result of arrangements to which the company is party and under which an estate in the land in question is to be conveyed at the direction of the company. The licence will also form part of the company’s trading stock for the purposes of clause 36.
    • A series of changes will remove an ‘unnecessary potential circularity’ in the meaning of an ‘interest in land’ for the purposes of the new tax.
  • Cl 58 (assessment, payment, collection and recovery of the economic crime (anti-money laundering) levy): two drafting changes are made for consistency, to ensure that those liable to pay the levy are referred to as ‘persons’ rather than ‘entities’.
  • Cl 78 (vehicle excise duty: cabotage temporary extension): the amendments will allow the treasury to extend the temporary cabotage rights until the end of December 2022; the current end date in clause 78 is 30 April 2022.
  • Sch 1 (abolition of basis periods): a series of changes will ensure that a tax liability arising from the transitional arrangements for the coming into force of Sch 1 may be reduced at step 6 of the calculation in ITA 2007 s 23.
  • Sch 2 (qualifying asset holding companies): changes will ensure:
    • the provision of a commercial loan to a fund will not constitute an interest in it for the purposes of determining whether a fund is close; and
    • managers and general partners of certain types of fund will only be regarded as having control of a fund as a result of their economic interest in it or as a result of their voting power.
  • Sch 5 (insurance contracts: change in accounting standards): the change will ensure that the provisions of FA 2012 s 128 (relief for transferee in relation to transferor’s BLAGAB expenses), relevant to the transfer of excess BLAGAB expenses in the context of a business transfer under FSMA 2000 Pt VII, are retained.

The treasury has published explanatory notes for all of the government’s report stage amendments.

Issue: 1562
Categories: News