Two statutory instruments have been published to give statutory effect to updated lists of assets that qualify for enhanced capital allowances (ECAs). The Capital Allowances (Environmentally Beneficial Plant and Machinery) (Amendment) Order 2016 reflects updated lists of qualifying water efficient technologies which clarify the qualifying criteria for a number of technologies and incorporate changes in technical standards. The Capital Allowances (Energy-saving Plant and Machinery) (Amendment) Order 2016 reflects updated lists of qualifying energy-saving technologies which create a new sub-technology for early leak warning and clarify the qualifying criteria for Leak Detection Equipment to incorporate changes in technical standards.
On 15 September HM Revenue and Customs published an updated design note for the Lifetime ISA following discussions with industry to finalise the parameters of the scheme and help ensure it works in the simplest way for both savers and providers. This updated note does not greatly add to our existing knowledge (and falls short of the detailed systems spec that we are anticipating) but it does confirm aspects such as treatment of the lifetime ISA for means-testing, divorce and bankruptcy purposes, as well as IHT treatment. (It falls to be treated as part of the individual's estate - so lacks one advantage of a registered pension scheme.) Situations where early withdrawals can be made without penalty (other than first house purchase and terminal ill-health) are still under consideration.
HMRC have published a new spotlight on an Entrepreneurs’ Relief (ER) tax avoidance arrangement that seeks to turn income into capital gains upon which ER can be claimed.
The introduction of the Apprenticeship Levy has moved a step closer with the publication of draft legislation on 19 September. The legislation is in line with what has been previously reported in Tax Matters Digest from previous consultations. This will come into effect in April 2017.
In this year’s Budget the Government announced two measures in the Finance Bill on tackling VAT evasion by overseas sellers. One of these concerned security, VAT representatives and online marketplace joint and several liability. Following Royal Assent, HMRC have now issued guidance.
Customer experience in the UK has improved for the first time in three years, according to KPMG Nunwood’s Customer Experience Excellence index.