Draft tax legislation gives greater predictability and clarity
- Published on Tuesday, 06 December 2011 11:33
- Posted by Scott Buckler
Following Budget 2011, the Government has today published responses to a number of tax policy consultations, alongside draft clauses for legislation to be included in Finance Bill 2012
This fulfils the Government’s objective of confirming the majority of intended tax changes at least three months ahead of publication, making the tax system more open, predictable and stable. The draft clauses are open to consultation, and taxpayers, businesses and tax professionals are able to contribute to this until 10 February 2012.
Finance Bill 2012 will include the next steps in the Government’s plans to make the UK system the most competitive in the G20:
• cutting corporation tax to 24% in 2013, on its way to 23% in 2014;
• reforming the controlled foreign companies regime; and
• introducing a patent box.
It also introduces measures to improve growth through more generous R&D; tax reliefs, enhanced capital allowances for enterprise zones, and a new seed enterprise investment scheme.
The draft legislation also includes clauses to introduce the VAT cost sharing exemption, and details of the Government’s proposals to encourage charitable giving and philanthropy.
David Gauke, Exchequer Secretary to the Treasury, said:
“This is the second year we have published draft tax legislation, and the Government’s more open, predictable and simple approach to tax policy making is working well. By confirming intended tax changes ahead of publication, we are giving greater certainty and stability to taxpayers and businesses than they have had in the past. Furthermore, the consultation responses we are publishing today demonstrate the Government’s commitment to listening to the views of those affected by changes to the tax system.”
Government responses to consultations on a range of tax policies have been published today by HM Treasury and HM Revenue & Customs (HMRC). These include responses on:
• reform of the taxation of non-domiciled individuals;
• reform of the controlled foreign companies rules;
• Air Passenger Duty;
• design of Machine Games Duty;
• the VAT cost-sharing exemption; and
• the removal of 36 tax reliefs.