Corporate Taxes

 


The Chartered Institute of Taxation (CIOT) respond to the Treasury Committee inquiry in to the Spring Budget 2020

The Finance Bill had its second reading in the House of Commons on Monday 27 April.  The Bill includes measures such as a Digital Services Tax, changes to the controversial Loan Charge and retaining corporation tax at 19 per cent (rather than implementing a previously legislated cut to 17 per cent). It makes some business reliefs more generous to encourage investment but introduces restrictions on the availability of two capital gains tax reliefs - entrepreneurs’ relief and private residence relief.

Further directions issued today by the President of the First-tier tax tribunal, Judge Sinfield, to the Tax Chamber and Tribunal users extending, in relation to certain proceedings, the general stay of all proceedings released on 24 March (as amended and released on 26 March).

As announced at Budget 2020, the government has published a consultation on the corporation tax rules that apply to hybrid mismatch arrangements.

HM Revenue and Customs welcome views on the tax issues arising from the reform of LIBOR (London Inter-bank Offered Rate) and other benchmark rates.

The Digital Services Tax (DST) has come into effect this month with questions remaining about who will pay it and how much they will pay, says the Chartered Institute of Taxation (CIOT).

Following the announcement at the Budget that the government would delay the implementation of the PAYE cap on the payable tax credit in the SME R&D scheme until 1 April 2021, the government has published a Summary of responses to last years’ consultation and a Second consultation.

HMRC welcomes views on the government’s intention to require large businesses to notify HMRC where they have adopted an uncertain tax treatment.

As announced at Spring Budget 2020, the government is pursuing a review of the UK funds regime. This review will consider taxation and relevant areas of regulation to ensure the ongoing competitiveness and sustainability of the UK regime as it applies to a fundamental area of the financial services sector. The government made two specific announcements at Spring Budget 2020. The first is a review of the VAT charged on fund management fees. The second is this consultation, which seeks to gather evidence and explore the attractiveness of the UK as a location for the intermediate entities through which alternative funds hold fund assets.

There was not much love for the government’s Digital Services Tax (DST) at the latest CIOT/Institute for Fiscal Studies (IFS) debate.