This legislation will allow the ISA savings of deceased individuals to continue to benefit from income tax and capital gains tax advantages, where these savings are retained in an ISA
Simple assessment This legislation provides a new power to allow HM Revenue and Customs to make an assessment of a person’s Income Tax or Capital Gains Tax liability without the person first being required to complete a Self Assessment tax return. Time limits for self assessment This legislation clarifies the time allowed for making a self assessment. This is 4 years from the end of the tax year to which the self assessment relates. Treatment of income from sporting testimonials This legislation confirms that all income from sporting testimonials and benefit matches for an employed sportsperson will be chargeable to tax, and liable to employee and employer National Insurance contributions. This treatment will normally be subject to an exemption of £50,000 of the income received. Retention of the 3 percentage point supplement for diesel cars This legislation will retain the supplement for diesel company cars which was due to be abolished with effect from 6 April 2016.
INHERITANCE TAX
Reforms to the taxation of non-domiciles This legislation will broadly align the existing Inheritance Tax deemed domicile provisions for individuals with the proposed changes for Income Tax and Capital Gains Tax. Treatment of pension scheme drawdown funds on death This legislation extends the scope of the current Inheritance Tax (IHT) exemption so that the failure to draw down all of the designated funds before a pension scheme member’s death will not trigger an IHT charge.
TAX ADMINISTRATION
Alignment of HMRC set off provision This legislation will ensure consistency across the UK in respect of the legal basis on which set-off is applied whilst maintaining the existing procedures for the application of set-off. Currently in Scotland any set-off process of sums owed to and by HMRC is effected under Scottish common law Extension of HMRC debtor and creditor interest rate to Scotland, Northern Ireland and National Insurance Contributions This legislation now includes Scotland and Northern Ireland to ensure the consistent application of interest rates payable on all tax related debts to which HMRC is a party. It also sets the rates of interest to an appropriate level given prevailing interest rates, and extends the definition of “taxation matter” to include National Insurance contributions. Office of Tax Simplification: permanent establishment Finance Bill 2016 will build on the excellent progress made under the previous Parliament by establishing the Office of Tax Simplification (OTS) on a statutory basis and outlining its core functions. Increased civil sanctions for offshore tax evaders This legislation strengthens existing civil sanctions and introduces a new asset-based penalty for those who evade their UK tax responsibilities using offshore transfers and structures. Penalties for the General Anti-Abuse Rule This legislation will introduce a penalty of 60% of the tax due which will be charged in all cases successfully tackled by the GAAR. Tackling the hidden economy: extension of new data-gathering powers This legislation gives HMRC the powers it needs to tackle the digital hidden economy. They provide a new power to gather data from business intermediaries who facilitate transactions, particularly online, and electronic payment providers who operate digital wallets. Civil sanctions for enablers of offshore tax evasion This legislation provides new civil penalties and naming provisions for those who have deliberately assisted taxpayers to hide assets and taxable income and gains outside of the UK, to evade their UK tax responsibilities. TAX AVOIDANCE, EVASION AND COMPLIANCE
Criminal offence for offshore tax evaders
CIPP Policy News Journal
25/04/2016, Page 294 of 453
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