Lead article: A new GAAR on its way?
Sarah Laing CTA: Following on from the announcement made in the 2012 Budget, HMRC have recently published a consultation document settling out proposals for a much debated general anti-abuse rule (GAAR). At first glance, it is not easy to fault the GAAR suggested by Graham Aaronson in his Report made to the Government in November 2011 (see below). However, to implement such a piece of legislation properly and effectively, a good deal of trust will need to be placed in HMRC’s hands. It is also hoped that the Government will respond positively to the concerns which will be raised during the consultation process.
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Finance Bill progress
The Public Bill Committee continued their deliberations on the remaining clauses and Schedules of the Finance Bill on 19 and 21 June 2012. 
[Click here] for full details of amendments passed. 
 
Small Charitable Donations Bill introduced to Parliament
Charities will soon be able to claim top-up payments on up to £5,000 of small donations without needing Gift Aid declarations, under changes in a Bill put before Parliament on 21 June 2012. 
The Small Charitable Donations Bill aims to enable charities and Community Amateur Sports Clubs (CASCs) to claim a Gift Aid-style payment on small donations where it is difficult to get a Gift Aid declaration. It will be known as the Gift Aid Small Donations Scheme (GASDS). 
Charities will be able to claim the Gift Aid-style top-up payments from HMRC from April 2013. 
 
Consultation - tax reliefs for the animation industry
The Government is introducing reliefs for the animation, high-end television and video games industries from April 2013, as announced in Budget 2012. A consultation document which seeks comments on the proposed design characteristics of the new tax reliefs has been published. The closing date for comments is 10 September 2012.
The Government will introduce targeted tax reliefs based on the existing film tax relief (FTR) model with the aim of making the UK ‘the technology centre of Europe’.
By applying this model, the proposed tax reliefs would give an additional deduction for qualifying core expenditure. This additional deduction, together with the tax deductible animation expenditure, will be deducted from the income arising from the animation. Any resultant loss may be surrendered for a payable tax credit. 
The final policy design for the reliefs and draft legislation for consultation will be published in the autumn. 
Further details are available from the HM Treasury website. 
 
Further consultation on the statutory definition of tax residence
The Government has published the summary of responses to the statutory definition of tax residence consultation along with draft legislation. The Government intends to introduce the statutory definition of tax residence and reforms to ordinary residence in Finance Bill 2013. The closing date for comments is 13 September 2012.
The consultation received around 120 responses from a mix of individuals and organisations. 
After considering the views put forward, the Government announced at Budget 2012 that the concept of ordinary residence would be abolished for tax purposes and overseas workday relief would be retained and placed on a statutory footing.
In relation to the statutory residence proposals, the main changes and clarifications that the Government will make following the consultation have been outlined in the latest consultation.
Further details are available from the HM Treasury website. 
 
Consultation - cap on life insurance tax relief
HMRC have outlined proposals to cap the amount of premiums that can be paid into Qualifying Life Insurance Policies to £3,600 in any 12-month period for policies issued on or after 6 April 2013 in a consultation document. The closing date for comments is 6 September 2012.
In Budget 2012 the Government announced its decision to restrict the tax relief available for qualifying life insurance policies (QPs) by limiting the amount of premiums payable into QPs for an individual to no more than £3,600 in any 12-month period.
A draft legislation will be made available for comment in autumn 2012. Further details are available from the HMRC website. 
 
CFC and permanent establishments - draft guidance
HMRC have published draft guidance for consultation, to support draft legislation in Finance Bill 2012 that applies to Controlled Foreign Companies (CFC) and permanent establishments.
Finance Bill 2012 contains the draft legislation for the new CFC rules, and some amendments to the rules for the exemption of foreign permanent establishments that will apply to CFCs and permanent establishments with accounting periods that begin on or after 1 January 2013.
The guidance is available from the HMRC website. 
 
National Insurance: New EU rules for flight and cabin crew
HMRC have published a note explaining changes to social security contributions which will be of particular interest to some airlines and aircrew, as it concerns the payment of social security contributions such as National Insurance. 
From 28 June 2012 new EU Regulation 465/2012 will introduce a new ‘Home Base’ rule to EU Regulation 883/2004 for determining which member state aircrew and their employers will pay social security contributions to. 
Further details are available from the HMRC website. 
 
Scope for joining the 2012-13 RTI pilot widens
HMRC reports that as a result of the success of the early RTI pilot stage, they will allow further products/providers into the pilot from November 2012.
HMRC have also agreed to allow: