Purpose of consultation
The Government has made a commitment to confirm the majority of Finance Bill measures at least three months prior to introduction, including the publication of draft legislation where possible. This consultation fulfils this commitment in advance of the Finance Bill 2011.
The aim of this consultation process is to provide more certainty for taxpayers and a greater window for scrutiny in advance of the legislative process. The Government would welcome comments to ensure the legislation works as intended. We are not seeking comments on the policy as part of this consultation. Separate consultations have been published today for some measures where comments are sought on the policy.
Contacts
If you wish to comment on any of the draft legislation, please use the contact details provided at the end of each explanatory note.
If you have any comments on the consultation process or the new Tax Information and Impact Notes, please email taxpolicymaking@hmtreasury.gsi.gov.uk
Closing date
Comments on the draft legislation can be submitted until 9 February 2011.
Documents
The overview document provides a summary of the draft legislation published, alongside updates on measures that will be included in the Finance Bill, but where draft legislation is not being published at this stage. The document also includes a Tax Information and Impact Note (TIIN) for each measure, which explain what the measure does, why it is proposed and what its impacts are.
The draft legislation and explanatory notes are published separately. Explanatory notes are intended to assist the reader in understanding the legislation, but are not meant to be a comprehensive description of the legislation. So, where a section or part of a section does not seem to require any explanation or comment, none is given.
In addition, we have provided the same information separately for each measure. Each piece of draft legislation below is accompanied in the same document by a draft explanatory note and a TIIN.
Next week the Government will publish a short technical note on the foreign branches webpage. This will provide additional information not within the scope of the Explanatory Note, including detail on the relation between the draft legislation and the OECD Model Tax Convention, and matters not covered in the draft legislation. The note includes several questions for interested parties.
Legislation was published on 6 December to address schemes which attempt to circumvent current legislation on loan relationships involving connected debtor or creditor where debits exceed credits. This is available on the HMRC website (opens in a new browser window).
Personal tax
- Income tax rates, rate limits and personal allowances for 2011-12 (PDF 195KB)
- Employer supported childcare: relaxation of available to all condition (PDF 104KB)
- Employer supported childcare: changes to tax relief (PDF 135KB)
- Furnished holiday lettings (PDF 256KB)
- Tainted charity donations (PDF 287KB)
- Accommodation expenses of MPs (PDF 175KB)
- Protection of Vulnerable Groups Scheme registration fee (PDF 183KB)
Pensions tax
- Restricting pensions tax relief (PDF 237KB)
- Pensions annuitisation (PDF 485KB)
- Enabling retirement savings programme (PDF 130KB)
Corporate tax
- Corporation tax: charge and main rate for financial year 2012 (PDF 176KB)
- Corporation tax: small profits rate and fractions for financial year 2011 (PDF 172KB)
- Plant and machinery writing-down allowances (PDF 277KB)
- Capital allowances: annual investment allowance (PDF 209KB)
- Interim CFC reform (PDF 312KB)
- Taxation of foreign branches (PDF 242KB)
- Bank levy (PDF 537KB)
- Corporate capital gains: value shifting (189KB)
- Corporate capital gains: restriction on set-off of pre-entry losses (PDF 193KB)
- Corporate capital gains: company ceasing to be member of group (PDF 214KB)
- Associated companies (PDF 184KB)
- Investment trust companies modernisation (PDF 210KB)
- Stamp duty reserve tax: interests in collective investment schemes (PDF 177KB)
- Oil and gas minor measures (PDF 216KB)
- Tonnage tax and leasing (PDF 184KB)
- Transfer pricing: application of OECD principles (PDF 184KB)
- Leases and changes to accounting standards (PDF 203KB)
- Life insurance apportionment rules (PDF 178KB)
Indirect tax
- High strength beer duty (PDF 188KB)
- Exceptional rates of vehicle excise duty for certain heavy goods vehicles (PDF 110KB)
- Value added tax: academies (PDF 193KB)
- Value added tax: treatment of business samples (PDF 173KB)
Anti-avoidance
- Group mismatches (PDF 230KB)
- Amounts not fully recognised for accounting (PDF 198KB)
- Disguised remuneration (PDF 399KB)
- UK resident investment companies: currency for tax (PDF 190KB)
- Value added tax: supply splitting (PDF 184KB)
Miscellaneous
Written Ministerial Statements
Alongside the draft clauses for Finance Bill 2011 published today, the Government has issued the following written statements.
- Written ministerial statement by the Exchequer Secretary to the Treasury: Improving Tax Policy Making and Draft Finance Bill 2011 Clauses (PDF 38KB)
- Written ministerial statement by the Financial Secretary to the Treasury: Restricting Pensions Tax Relief (PDF 38KB)
- Written ministerial statement by the Exchequer Secretary to the Treasury: Anti-Avoidance: Disguised remuneration (PDF 34KB)
The Exchequer Secretary confirmed on the 9th November that the Government will publish draft clauses for Finance Bill 2011 on the 9th December. This is part of the Government’s commitment to improving tax policy making.
PDF version
The Government is committed to improving the way it makes tax policy to restore the UK tax system’s reputation for predictability, stability and simplicity. A discussion document was published at the June Budget setting out a number of proposals for improving the framework for developing, legislating and implementing tax policy.
'Tax policy making: a new approach' consultation and response documents are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
On 9 December, the Government published its response to the discussion document. It provides a summary of the ways in which tax policy making will change as a result of this consultation.
The Government is determined to reinforce the new approach by continuing with this constructive engagement. Specifically, as set out in the discussion document, it welcomes feedback from interested parties on: