On 16 January 2018, the Public Bill Committee completed its work on Finance (No. 2) Bill 2017-19 (also known as Finance Bill 2018), meaning that the Bill has now completed its Committee Stage. A version of the Bill has now also been published, showing the amendments made at Committee Stage. It will now proceed to Report Stage and Third Reading, where further amendments may still be made following debate in the House of Commons. The dates of these stages have not yet been announced.
The amendments to the Bill at this stage include:
- Extending the amendments to the corporate interest restriction (CIR) rules, which treat an interest in an entity that is ‘held for sale’ under IAS as being a ‘non-consolidated subsidiary’ (and therefore excluded from the CIR group), to cases where an interest in an entity is ‘held for sale or held for distribution to owners;
- Amending the definition of ‘securities’ in the venture capital trust (VCT) legislation to exclude loans providing more than a commercial rate of return, or offering control or preferential rights over company assets; and
- Amendments to the offshore trusts anti-avoidance provisions to clarify that they apply to both capital and income benefits, and to ensure that they will not result in income tax charges on non UK resident beneficiaries and that no double taxation should arise. There have also been amendments to ensure the onward gift rules continue to apply where appropriate.
The Government’s explanatory notes for these amendments can be found here.
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