CIPP comment: The CIPP looks forward to seeing a draft version of this statement as the detail it contains may reduce the number of enquiries received by payroll departments from employees.
Integration of income tax and National Insurance contributions
Following consultation with a wide range of different stakeholders, the Chancellor announced a detailed consultation on integrating the operation of income tax and National Insurance which will be published shortly after Budget. It will set out a broad range of options for the operation of employee, employer and self employed NICs. The Government will continue to engage with representatives from small business during the forthcoming consultation. CIPP comment: Members of the CIPP Policy team have already been involved in the consultation to date and expect this involvement to continue with the forthcoming formal consultation. As ever, we will be relying on CIPP members to provide feedback when the time comes.
Tax Avoidance
Tax avoidance The Government plans to introduce a General Anti-Abuse Rule (GAAR) targeted at artificial and abusive tax avoidance schemes, believing this will improve the UK’s ability to tackle tax avoidance while maintaining the attractiveness of the UK as a location for genuine business investment. The detail of this proposal will be consulted on with the aim of legislating in Finance Bill 2013.
Previously announced measures
Employer asset-backed pension contributions
On 29 November 2011, the Government announced that legislation would be introduced in Finance Bill 2012 to change the tax rules in relation to employer asset-backed pension contributions, with effect from the date of the announcement. These changes were designed to ensure that unintended, excess tax relief could not arise in respect of such contributions. On 22 February 2012, the Government published further legislation, with immediate effect, with the aim of limiting the circumstances in which up-front relief can be given to asset- backed arrangements in line with the original policy aim.
Qualifying Recognised Overseas Pensions Schemes (QROPS)
Changes in primary legislation will be introduced in Finance Bill 2013 to strengthen reporting requirements and powers of exclusion relating to the QROPS regime. They will support the changes in secondary legislation published for consultation on 6 December 2011. The Government also announced that where the country or territory in which a QROPS is established makes legislation or otherwise creates or uses a pension scheme to provide tax advantages that are not intended or available under the QROPS rules, the Government will act so that the relevant types of pension scheme in those countries or territories will be excluded from being QROPS
CIPP Policy News Journal
09/10/2012, Page 107 of 234
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