Anti-Avoidance, Tax Administration, Tax Simplification
The main announcements for individuals and businesses is shown below. These are followed by a list of all announcements which may be of interest
to individuals or businesses. More details can be found in the Overview of Tax Legislation and Rates (OOTLAR) document.
Headline announcements
Anti avoidance
A package of measures effective from Budget Day, 21 March 2012 have been announced by the government. Further information can be found in the
Overview of Tax Legislation and Rates (OOTLAR) and the Tax Information and Impact Notes (TIINs) These measures include:
- Employer asset-backed pension contributions
- Solvency II and the taxation of life insurance companies
- Stamp duty land tax (SDLT): rate in respect of residential property where consideration over £2 million
- Stamp duty land tax: enveloping of high value residential properties
- Stamp duty land tax: sub-sales rules
- Site restoration payments
- Inheritance tax: offshore trusts
- Income tax: corporate settlor-interested trusts
- Sale of lessor companies
- Plant or machinery leasing
- Life insurance: income tax avoidance
Tax Administration
Budget 2012 confirmed that legislation will be introduced in Finance Bill 2012 to give effect to the Agreement between the UK and Switzerland on
cooperation in tax matters that was signed on 6 October 2011. As a result of the Protocol signed on 20 March 2012, two changes have been made to the
Agreement which will be reflected in the legislation. Full details can be found in the Overview of Tax Legislation and Rates.
UK/Switzerland agreement (PDF 62K)
Tax agreement between the UK and Switzerland (Tax Information Note)
Tax Simplification
Tax Transparency
The government wants all taxpayers to benefit from greater transparency in the tax system, so they understand what taxes they pay and how much.
HMRC will provide more accessible information to all taxpayers on their tax affairs. In April, it will launch an online Business Tax Dashboard,
which will offer a quick and easy way for businesses to see how much tax they have already paid and how much they still owe.
And from 2014-15, HMRC will also improve transparency for individual taxpayers. A new Personal Tax Statement will be available to all individuals who file
their Self Assessment return online (and some taxpayers in PAYE). It will detail how much tax and National Insurance they have paid, average tax
rates and show them how those deductions contribute to public expenditure.
In March 2011, the Office of Tax Simplification (OTS) published their interim report on simplifying tax for the smallest businesses, which recommended
that the government look at integrating income tax and National Insurance. In response to this recommendation, the government announced at Budget
2011 that it would consult on the issue.
Following consultation with a wide range of different stakeholders, the government has announced a detailed consultation on integrating the operation
of income tax and National Insurance which will be published shortly after Budget. It will set out a broad range of options for the operation
of employee, employer and self employed National Insurance Contributions. The government will continue to engage with representatives from small
business during the forthcoming consultation.
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All announcements
Anti avoidance
- Inheritance tax: offshore trusts
- Inheritance tax: settlor-interested trusts
- Sale of lessor companies
- Capital allowances: changes to anti-avoidance rules for plant and machinery
- Plant or machinery leasing
- Life insurance: income tax avoidance
- Post-cessation trade relief and post-cessation property relief
- Loan relationships avoidance: debt buybacks
- Property business loss relief
- Stamp duty land tax (SDLT): enveloping
- Stamp duty land tax: sub-sales rules
- Site restoration payments
- Disclosure of tax avoidance schemes (DOTAS)
- Stamp duty land tax: disclosure of tax avoidance schemes
- Manufactured overseas dividends
- General Anti - Abuse Rule (GAAR)
- Manufactured payments
- Tax mitigation and IR35
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Tax administration
- Tax agents: dishonest conduct
- Information powers
- Incapacitated persons: a modern approach
- Real time information
- Simplification of regulatory powers
- Withdrawing a notice to file a self-assessment tax return
- PAYE late payment and filing penalties
- Information powers
- Criminal investigations
- Customs and excise modernisation
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Office of Tax Simplification: review of reliefs
- Mineral royalties: repeal
- Stamp duty land tax: disadvantaged areas relief: repeal
- Grants for giving up agricultural land: repeal of relief
- Angostura bitters: repeal of relief
- Black beer: repeal of relief. An updated Tax Information and Impact Note for this measure is available at Annex A
- Luncheon vouchers: repeal of relief
- Certain payments arising from a reduction in pool betting duty: repeal of reliefs
- Tax reserve certificates issued by HM Treasury: repeal of relief
- Payments for the benefit of family members: repeal of relief
- Capital allowances: safety at sports grounds: repeal of relief
- Capital allowances: flat conversion allowances: repeal of relief
- Harbour reorganisation schemes: corporation tax and stamp duty: repeal of reliefs
- Pensions for 1947 redundancies: repeal
- Deeply discounted securities: incidental expenses: repeal of relief
- Life assurance premium relief: repeal
- Life assurance premiums paid by employers under EFRBS repeal of relief
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