CIOT comments, sent to HMRC 11 October, in response to the document summarising responses received during the 2012 consultation on the transfer of assets abroad legislation. A new exemption and other charges were legislated for in Finance Act 2013. This document sought views on the matching rules for the benefits charge and on draft guidance.
This document covered 3 aspects:
- A supplement to the summary of responses to the earlier EU issues consultation on section 13 and transfer of assets abroad
- Further consultation on matching rules for linking the benefit received by the UK resident to the income of a person abroad, accepting that the December 2012 draft legislation would not always provide an equitable result.
- Consultation on draft guidance on the transfer of assets legislation
As part of the further consultation on matching rules for the benefits charge, 4 possible options for reform were outlined:
- Option 1: Amend the December 2012 draft legislation
- Option 2: Use guidance to provide clarity but keep the existing rules in ITA 2007 sections 731-735A
- Option 3: Amend the existing legislation
- Option 4: Introduce a new regime for matching relevant income to benefits received.
As part of this further consultation, HMRC propose to set up a working party to develop detailed options for reform. They envisage an initial meeting in early September with perhaps 2 further meetings (one towards the end of September) and a later one to possibly share draft legislation prior to the Autumn Statement. The group will be composed of all interested parties rather than meeting separately with individual rep bodies/ firms. Accordingly they suggest a maximum of 2 members per rep body. Giles Clarke has agreed to represent the CIOT on this working party.
The condoc and the CIOT submission are available below in Adobe (PDF) format.
11 October 2013