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UK Consults On Draft Finance Bill 2017

by Jason Gorringe,, London

14 December 2016

The UK Government has released draft legislation to implement measures announced in previous budgets and the Autumn Statement.

The draft Finance Bill 2017 will:

  • Confirm that corporation tax will be cut to 17 percent by 2020;
  • Increase the amount that social enterprises can raise through Social Investment Tax Relief; and
  • Introduce a one-year tax break for companies investing in charge-points for electric vehicles and make sure the cleanest company cars are taxed the least providing a new 100 percent business rates relief for new full-fiber infrastructure.

Finance Bill 2017 will also legislate for additional measures to tackle tax evasion, avoidance, and aggressive tax planning by:

  • Preventing the use of disguised remuneration schemes which help people avoid national insurance and income tax;
  • Introducing a new penalty for those who enable the use of tax avoidance schemes that are later defeated by HMRC;
  • Creating a new legal requirement to correct a past failure to pay UK tax on offshore accounts and investments with tough new sanctions for those who fail to do so; and
  • Strengthening sanctions and penalties attached to illicit tobacco.

The Government is also looking to go further by consulting on a new requirement for the creators of offshore structures to register them with HM Revenue and Customs.

Finally, the Bill will include provisions for the new soft drinks industry levy, update the rules around how companies claim tax deductions for interest expenses and losses, and reform the rules around salary sacrifice.

A consultation on the draft legislation will run until February 1, 2017. Final details will be confirmed in next year's Budget.

TAGS: Finance | Insurance | tax | investment | business | tax avoidance | law | budget | corporation tax | United Kingdom | offshore | legislation | tax planning | Other | BEPS

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