¹ Available to people born before April 6 1935. Tax relief for this allowance is restricted to 10%

² This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935

* The 10 per cent starting rate applies to savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.

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The published clauses represent a “majority” of the Finance Bill 2012, according to Exchequer Secretary to the Treasury. Publishing such an extensive preview ahead of the spring budget and summer Finance Act provides ample time for the announcements to be considered and reviewed by interested parties and ensures “stability and certainty in the UK tax system for all”, the minister said in an exclusive interview with TAXtv (follow link to view the full interview).

The Finance Bill clauses focus on areas covered in summer consultations carried, with the exception of the statutory residence test, which was expected to be announced following consultation earlier in the year. Gauke confirmed that the statutory residence test would be delayed for 12 months because there were “difficult issues to address”. The Chancellor will set out the next steps in the spring Budget. One measure that will come into effect in 2012, however, is the increased domicile remittance charge of £50,000.

There’s a lot to wade through; as the week progresses, AccountingWEB’s team will present the key measures for small/medium businesses and their advisers from the following topics:

Personal tax

• Income tax rates, rate limits and personal allowances for 2011-12
• Seed investment scheme 
• Enterprise Investment Scheme and Venture Capital Trusts 
• Tax-advantaged venture capital schemes: consultation response 
• Reform of the taxation of non-domiciled individuals
• Capital gains tax: foreign currency bank accounts
• Reform of the taxation of non-domiciled individuals: consultation response 
• Inheritance tax nil rate band: switch to CPI
• Capital gains tax: annual exempt amount) 
• Single payment and capital gains tax roll-over relief 
• Tax exemptions: international military headquarters, EU forces, etc 
• Income tax exemption: armed forces continuity of education allowance 
• Company car tax: security enhanced cars
• Taxation of non-residents: Champions League final 2013  
• Qualifying time deposits: deduction of tax at source 

Corporation tax

• Changes confirmed for main rate for 2013, small profits rate for 2012
• Full reform of controlled foreign companies rules 
• Controlled foreign companies reform: consultation response
• Corporation tax reform: patent box 
• Research and development tax relief 
• Enterprise zones: first year allowances for designated areas 
• Capital allowances for fixtures 
• Improvements to the real estate investment trust regime 
• Tax transparent investment funds 
• Bank levy rate and amendments 
• Solvency II and the taxation of insurance companies 
• Life insurance companies: a new corporate tax regime: consultation response 
• General insurance: claims equalisation reserves 
• Lloyds stop-loss insurance 
• Company distributions 
• Amendments to the tax treatment of financing costs and income (debt cap)
• Debt cap: consultation response 
• Changes to UK generally accepted accounting practice 
• Supplementary charge: restriction on decommissioning tax relief/scope of supplementary charge

Charities

• Gifts of pre-eminent objects to the nation 
• Inheritance tax: reduced rate for estates leaving 10% or more to charity 
• A new incentive for charitable legacies: consultation response 
• In-year repayments of income tax to charities 
• Self assessment donate 

• VAT: low value consignment relief 
• VAT: cost sharing exemption 
• VAT: cost sharing exemption: consultation response 
• Tackling VAT evasion on road vehicles brought into the UK 
• VAT: online registration and removal of the threshold for non-UK established businesses 
• VAT: consultation on the next steps for moving VAT online: consultation response 
• VAT: grouping extra statutory concession 
• VAT: treatment of public bodies
• Stamp duty land tax and stamp duty: relief for National Health Service bodies
• Machine games duty
• Gambling duties: double taxation relief 
• Repeal of section 22 of the Alcoholic Liquor Duties Act 1979 (ALDA) 
• Reform of air passenger duty

• Capital allowances: anti-avoidance rules for plant and machinery 
• Changes to the capital allowance anti-avoidance rules for plant and machinery: consultation response
• Stamp duty: disclosure of tax anti avoidance schemes
• Manufactured overseas dividends

• Working with tax agents – dishonest conduct: response document 
• Information powers 
• PAYE regulations: information 
• Tax agents: dishonest conduct 
• Tax agreement between the United Kingdom and Switzerland 
• Incapacitated persons: a modern approach 

• Removal of 36 tax reliefs: consultation response, plus a bunch of miscellany ranging from mineral royalties to stamp duty and even luncheon vouchers.

Article source: http://feedproxy.google.com/~r/co/iibl/~3/M3Vf8ipI1a4/521926

As revealed today, the surprising omission to the Finance Bill clauses relates to the test which most commentators had anticipated being announced today. The government announced in the Budget earlier this year its intention to introduce the test in the Finance Bill 2012.

David Gauke told TAXtv that the statutory residence test would be delayed for 12 months because there were “difficult issues to address” which, he was keen to point out, was “why the matter has not been dealt with before”. He said the government “remained committed to the statutory residence test” and that George Osborne would be giving details of the next step in the spring budget with draft legislation expected at this time next year and a new anticipated introduction from 6 April 2013.

In October Robert Gaines Cooper took a judicial review to the Supreme Court against the UK tax authorities, claiming (along with two others) that they had failed to stick to published guidance and had significantly changed their practice on tax residence.

The Supreme Court rejected the allegations, however, the law lords were critical of the guidance as “unclear” and “ambiguous”.

Continued…

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