Draft 2015 Tax Legislation Published
A week after the 2014 Autumn Statement (click here to access our article) the government has published the draft legislation for next year’s Finance Act.
Whilst much of it reflects the announcements made in the Autumn Statement, it does add some meat to the bones.
For example, we now have 27 pages of legislation about the “Diverted Profits Tax” (aka the “Google” or “Starbucks” tax) aimed at multinationals diverting profits away from the UK and to countries with a lower tax rate. The question is: will the effort result in noticeably larger tax revenues?
On the other hand, the draft legislation restricting entrepreneur’s relief on the disposal of goodwill to a connected company is only one page long.
Other things have become clearer:
- As expected the exemption for trivial benefits-in-kind does not apply to cash and gift vouchers; it also does not apply to benefits-in-kind provided in connection with a salary sacrifice arrangement
- The increased Remittance Basis Charges start on 6 April 2015 so the payment will not be actually due until 31 January 2017
- The new Research and Development rules will start on 1 April 2015
- The exemption from Air Passenger Duty for children under 12 will start on 1 May 2015
- Search and rescue charities will have to wait until 1 May 2015 before being able to reclaim input VAT on purchases in respect of their non-VATable business
- Further details about charging capital gains tax on disposals of property by non-residents. This is a whopper: 37 pages of legislation plus a further 20 pages of notes. A full article on this topic will follow early in 2015.
It is important to note that these are draft clauses only and may change. However, as there is not anything too controversial there are unlikely to be any major changes.
The team at robinson+co are now be looking through the legislation for any hidden horrors, and will contact clients on an individual basis if any of the changes will affect them.
In the meantime please call your usual robinson+co contact if you have any queries:
- Workington: 01900 603623
- Gosforth: 019467 25808
- Whitehaven: 01946 692423