Exchequer Secretary to the Treasury, David Gauke, has published nine documents
for discussion and consultation relating to tax, following commitments made at
the June budget.
The consultations are part of the the coalition government's commitment to
being "more open and transparent" in its approach to policy making, the Treasury announced today (July 27).
“We want to make the tax system simpler and work better for the taxpayer,"
said Gauke. "By reducing burdens, making the right choices and involving
taxpayers, we are sending a very clear signal that Britain is open for business.”
“We are committed to a more considered and open approach to tax policymaking,"
Gauke added. "That is why consultation and scrutiny of our tax policies
will be the cornerstone of our tax policymaking process. I want to encourage
relevant parties to provide their feedback on the tax consultations we have
published today.”
Details on each document, published July 27 are as follows:
PAYE reform
The consultation on improving the operation of Pay As You Earn (PAYE) seeks
views on the collection of real time information to simplify taxation and reduce
burdens on business. It also invites views on an option for longer-term reform
to improve accuracy and further reduce administrative burdens, or alternative
proposals to the same end. The government seeks interested parties’ views
on these proposals;
Furnished holiday lettings
The consultation document seeks views on a proposal to ensure that the tax
rules for furnished holiday lettings meet EU legal requirements in a fiscally
responsible way, by changing the eligibility thresholds and restricting the
use of loss relief.
Pensions tax relief
The government announced in the June budget that it is considering the issue
of pensions tax relief. A discussion paper sets out the range of policy issues
that would need to be decided in any new regime. The government seeks interested
parties’ views on these issues;
Associated company rules
The government has published a summary of responses to the recent consultation
on simplifying the associated company rules as they apply to the small profits
rate of corporation tax. As announced in the June budget, the government will
introduce the proposed legislation in Finance Bill 2011 and it will take effect
from April 1, 2011;
Inheritance tax avoidance schemes
The consultation seeks views on legislation designed to bring inheritance
tax, as it applies to the transfer of property into trust, into the disclosure
regime, with the objective of addressing the problem of identifying such schemes
and users at an early stage. The government seeks interested parties’
views on the detail of implementation;
Taxation of foreign branches
The discussion document seeks views on the scope of an exemption for foreign
branch profits, aimed at delivering a more territorial approach to corporation
tax to enhance the UK’s competitiveness. The government seeks interested
parties’ views on the likely impacts of the proposals set out in the document
and on implementation of these proposals;
Controlled Foreign Companies interim improvements
The government has published a short note setting out the aim and scope of
CFC interim improvements, together with the framework for consultation over
the summer. The government seeks interested parties’ views on the nature
of these improvements, including possible options to achieve the aims set out
here and potential other worthwhile improvements that should be considered;
Modernisation of Investment Trust Company rules
The consultation document sets out proposals for modernising tax rules for
Investment Trust Companies, together with consequential amendments to the Companies
Act by the Department for Business Innovation and Skills. The government seeks
interested parties’ views on the proposals for change;
National Minimum Wage: travel and subsistence schemes
The government has published a summary of responses to the recent consultation
on travel and subsistence schemes implemented for some temporary workers paid
at or near the National Minimum Wage (NMW). The government has concluded that,
on balance, action should be taken. It will amend the NMW Regulations to take
effect from January 1, 2011.
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