UK: Summer time and tax living ain’t easy
19 August 2014
Posted by: Author: Chartered Accountants Ireland
Author: Chartered Accountants Ireland
Despite it being the
summer, there has been no let-up of late in consultations being launched by the
exemption for emergency service personnel
The Government is
considering extending the Inheritance Tax exemption for armed forces personnel
who die whilst on active service to all emergency service personnel who die in
the line of duty, or whose death is hastened by injury incurred in the line of
duty. Responses should be submitted by 15 October 2014.
employees and earnings related securities
relates specifically to liability for earnings-related National Insurance
Contributions from employment related securities income earned by
internationally mobile employees. Responses should be submitted by 16 October
Travel and subsistence
In response to the
Office of Tax Simplification’s January 2014 report on the tax treatment
of employee benefits and expenses, ‘Review of employee benefits and
expenses: second report’, the government announced at Budget 2014
that it intended to review the rules underlying the taxation of travel and
subsistence expenses. This consultation is the first stage of that review.
In the first stage of
the consultation the government wishes to improve its understanding of the
commercial realities of travel and subsistence payments. Amongst other issues,
the government intends to explore the circumstances in which employers pay
travel and subsistence expenses (whether tax relievable or not); how tax
influences these decisions; and the other factors which influence commercial decision
making in this area.
In this stage the
government also intends to discuss the framework within which it will develop
any new principles to the underlying rules on travel and subsistence expenses.
In particular the government wants to discuss what sort of payments should
qualify for tax relief, who they should need to be paid by, to whom and in what
manner – and whether tax relief for subsistence payments need be tied to the
rules for travel. The government intends to report on this stage of the review at
the Autumn Statement 2014.
Annual Tax on Enveloped
Dwellings (ATED): reducing the administrative burden for business
seeks views on options to reduce the administrative burden for businesses
within ATED with responses due by 16 September 2014.
Statutory Concession D33
ESC D33 covers a
number of circumstances where a capital sum is received from a right of action.
The concession was amended in January 2014 so that only the first £500,000 of a
capital sum where there is no underlying asset was exempt and exemption for amounts
in excess of this had to be made in writing to HMRC.
seeks views on introducing a limit of £1,000,000 exemption with amounts in
excess of this liable to Capital Gains Tax (CGT). It also seeks views on
legislating the relief given by ESC D33 for personal compensation or damages
and indemnities. Responses are due by 15 September 2014.
Strengthening the Tax
Avoidance Disclosure Regimes
contains proposals to further strengthen the Disclosure of Tax Avoidance
Schemes (DOTAS) and initial thinking about how the VAT Disclosure Regime might
be updated. Responses are due by 23 October 2014.
recovery: consultation on a cluster area allowance
considers a new cluster area allowance to encourage investment in ultra-high
pressure, high temperature oil and gas fields. The new allowance builds
recommendations for maximising economic production of oil and gas. It has been
designed not only to support investment in technically challenging development
projects, but also to encourage exploration in the surrounding areas. The
allowance will reduce the tax on a portion of a company’s profits from 62% to
30% at current rates. Responses should be submitted by 30 September 2014.
VAT: Mini One Stop Shop
This is a technical
consultation to analyse amendments to the VAT Regulations arising as a
consequence of the introduction of the Mini One Stop Shop. Responses should be
submitted by 28 August 2014.
consultation outcome was also recently published "Implementing a capital gains tax
charge on non-residents” with the promise of a more detailed
response in early Autumn 2014. In the meantime it has been announced that
in recognition of the points raised in relation to the treatment of different
types of diversely held entities, the Government intends to introduce a form of
"close company” test to limit the scope of the extension of CGT to
This should ensure
that the extension of CGT will not apply where a disposal of UK property is
made by diversely held institutional investor that holds UK residential
property directly, or by one which invests indirectly through an arrangement
that is not controlled by a few private investors. The government intends to
draw on existing legislation to achieve this.
This article first appeared on charteredaccountants.ie.