By Daniel Hunter
The Government has today (Tuesday) published draft tax legislation, as well as responses to consultations that have taken place over the summer.
The legislation will be included in Finance Bill 2013 and implements a number of tax policies announced at Budget 2012 and Autumn Statement 2012. The draft legislation is open to technical consultation until 6 February 2013.
Finance Bill 2013 will include key government measures to support growth, including:
• reducing the main rate of corporation tax to 21% in 2014;
• increasing the annual investment allowance for plant and machinery to £250,000 for two years from 1 January 2013;
• introducing tax reliefs that are among the most generous in the world for the video games, high-end TV and animation industries; and
• introducing an ‘above the line’ tax credit for R&D.
The draft legislation also includes action to support households and reward work, including increasing the tax free Personal Allowance to £9,440 from April 2013. It implements several important government actions against tax avoidance, including the General Anti-Abuse Rule (GAAR) and the Budget 2012 action to counter avoidance of Stamp Duty Land Tax (SDLT).
This is the third year that draft legislation has been published as part of the Government’s commitment to a more transparent, efficient and simpler tax system. It also meets the Government’s objective to confirm the majority of tax changes at least three months ahead of publication.
"The measures for which we are publishing draft legislation today are part of the Government’s wide reaching reforms to deliver a progressive tax system that is simpler, affordable, fair and encourages growth," David Gauke, Exchequer Secretary to the Treasury said.
"They demonstrate our commitment to listening to the views of those affected by changes to the tax system and this simple and transparent approach provides greater stability and certainty to taxpayers and businesses."
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:
• The Statutory Residence Test and reforms to Ordinary Residence;
• The fair taxation of residential property transactions;
• Lifting the Lid on Tax avoidance Schemes; and
• The Office of Tax Simplification’s report on tax-advantaged employee share schemes.
All consultations being published today are available via the HM Treasury website.
Join us on