The CIOT comments sent to HMRC on The Social Security (Miscellaneous Amendments) Regulations 2017.

The CIOT comments sent to HMRC on Draft FB17 Clause 1 Schedule 1: Off-payroll working.

The CIOT sent to HMRC on Draft FB17 Clauses 32, 34 & 35: Disguised remuneration.

On 19 January 2017, the CIOT submitted the response to the first tranche of the Finance Bill (FB) 2017 draft consultative clauses, published on 5 December 2016, that implement these reforms. 

The CIOT has called for a timetable setting out when and how the proposed 50% reduction in the Air Departure Tax (ADT) burden will be phased in and provision to monitor the outcomes of the Scottish Government’s ADT policy.

From 6 April 2017, 100% of foreign pension income is to be subject to UK income tax, the period of an individual’s non-UK residence during which UK tax charges can apply to payments out of pension savings in overseas pension schemes that have had UK tax relief is extended from 5 to 10 years, the UK tax treatment of non-UK registered pension schemes will be aligned with UK registered schemes and lump sums paid under foreign pension schemes to or in respect of UK residents will be brought into charge for UK tax purposes.

We have continued our engagement with HMRC regarding the proposed changes to the FRS and submitted our comments and concerns to HMRC.

Clause 9 of the draft Finance Bill 2017 makes a number of changes (i) to narrow the scope of the exemption for termination payments so that non-contractual PILONs, will be taxable (to the extent equating to basic pay), (ii) Foreign Service Relief (FSR) is essentially abolished (save for seafarers) and (iii) it is clarified that the exemption for injury payments does not apply in cases of injured feelings. In addition, the NIC draft clauses ensure that all PILONs are also subject to Class 1 NICs and makes an employer liable to pay employer NICs on the amount of a termination payment that exceeds the £30,000 income tax exemption. These amendments have effect from 2018/2019 onwards.

In addition to raising concerns around some aspects of the detail of the proposed new rules, the CIOT tackled the implementation of the new rules for a corporate interest restriction, saying that the legislation has been rushed through without sufficient time for full consideration.  

The CIOT responded to the House of Lords call for evidence on the delegation of powers as part of the legislative process, particularly in the context of Brexit.