Capital Gains Tax and Investment Income


HMRC has provided comments on the Q&As relating to mixed fund cleansing. 

The CIOT comments on the the HMRC consultation The Taxation of Trusts: A Review.

The CIOT response to the HMRC call for evidence on Amendments to Tax Returns.

As we have previously reported, new rules for foreign domiciliaries and non-UK resident trusts were introduced from April 2017, by Finance (No 2) Act 2017 and Finance Act 2018. The rules contain anti-avoidance provisions but also protections to help settlors of offshore trusts affected by the changes. However, there is a technical defect in the legislation, relating to offshore income gains, which could cause serious problems. 

There has been a recent development regarding the trust protection rules and offshore income gains, which may be relevant for 2017/18 tax returns. 

MPs got a final chance to amend this year’s Finance Bill with today’s report stage debate. Government amendments on intangible fixed assets and entrepreneurs’ relief were passed. A cross-party proposal to amend the Bill to hinder government preparations for a ‘no deal’ Brexit was passed. Another cross-party proposal for a review including consideration of the 2019 loan charge was accepted by the government.

The CIOT FB18-19 representations to the public bill committee.

MPs resumed debate and passed clauses 7 on Optional remuneration arrangements, 11 about beneficiaries of tax-exempt employer-provided pension benefits, 12 which related to employment and social security income and clauses 13 which dealt with tax treatment of sales of UK land by non-UK residents. All Opposition amendments were defeated. There were regular mentions of the CIOT/IfG Better Budgets report which Labour used to criticise the Government's approach to this Finance Bill. The Public Bill Committee will begin the next session on Thursday on clause 14, which covers disposals of UK land and payments on account of capital gains tax.

Briefings from the CIOT on Finance (No3) Bill.

Finance Bill (No.3) began its committee stage today with two days of Committee of the Whole House scheduled for today and tomorrow. The clauses debate today focused on tax thresholds and reliefs and on Brexit.