Finance Bill 2016 received Royal Assent on 15 September 2016 and becomes Finance Act 2016. The Government has also announced that draft clauses for Finance Bill 2017 will be published on 5 December 2016, following the Autumn Statement on 23 November.
HMRC have announced some changes to Corporation Tax forms from 19 September 2016. From this date HMRC will stop issuing a number of paper documents to taxpayers and agents including the acknowledgement of receipt of a company tax return, key filing dates letter and (for some cases only) return/payment reminder letter. Electronic alternatives will be provided instead.
The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill was published on 12 September. This Bill sets out the key principles of the new tax (very similar to Stamp Duty Land Tax which it will be replacing in Wales from April 2018), including the types of transactions, the procedure for setting rates and bands, how the tax will be calculated, and what reliefs will apply. It also introduces anti-avoidance measures.
As part of the further consultation on Reforms to the taxation of non-domiciles the Government have announced their intention to extend the availability of Business Investment Relief (BIR). BIR allows non-doms who claim the remittance basis to use their foreign income and gains to invest in the UK without triggering a taxable remittance, but is currently limited to certain qualifying investments. At this stage there is little detail on any specific proposals to expand this relief.
HMRC have announced the withdrawal of Extra-Statutory Concession (ESC) A94 which gave special treatment to ‘Theatre angels’ regarding the taxation of profits and losses arising from the backing of theatrical productions. The change will affect individual investors but not corporates and will apply to new productions from 1 April 2017. Grandfathering arrangements will apply until 31 March 2019 for productions currently using the concession or that begin to do so before 1 April 2017 if notification is made to HMRC by 31 December 2016.
New research, entitled ‘Through the Looking Glass’,an urgent demand from C-suite for General Counsel
KPMG in the UK has revised GDP growth projections up as recent economic data points to a period of more subtle adjustment following the initial shock of the UK’s decision to leave the EU. KPMG now predicts UK GDP to grow by 1.7% this year and by 0.8% next year (up from 1.5% and 0.5% respectively).