Pensions tax relief: family pension plans – legislation will be introduced to remove unintended tax advantages from arrangements where an employer pays a pension contribution into a registered pension scheme for an employee’s spouse or family member as part of the employee’s flexible remuneration package. Pensions tax: abolition of contracting out – Contracting out through a defined contribution pension scheme was abolished from 6 April 2012. Legislation will be introduced to bring the pensions tax primary legislation into line with the Pensions Acts 2007 and 2008 from April 2013 while allowing pipeline payments to still receive the appropriate tax treatment. Qualifying Recognised Overseas Pensions Schemes (QROPS) – legislation will be introduced to make changes relating to the tax regime for overseas transfers of pension savings (QROPS and relevant non-UK schemes). Income tax rules on interest – legislation will be introduced on disguised interest and on deduction of income tax from interest on compensation payments, specialty debt, and interest in kind. Income tax and national insurance contributions (NICs) reform – the government will wait for further progress on planned operational changes to the tax system before formally consulting on the integration of the operation of income tax and NICs.
Non-domicile taxation – legislation will be introduced to make further changes to simplify the rules and remove minor anomalies.
Under Tax administration there is also confirmation of the PAYE late payment and filing penalties where legislation will be introduced to encourage compliance with the real time information (RTI) payment and information obligations.
FINANCE ACT 2013
29 March 2013
The Finance Bill together with explanatory notes and other budget related documents was published on 28 March 2013.
The Finance Bill 2013 will enact tax measures announced since the March 2012 Budget and will bring about an increase to the tax-free personal allowance to £9,440 from April 2013 and a package of measures to tackle tax avoidance and evasion, including the UK’s first General Anti-Abuse Rule (GAAR); The majority of the measures in this year’s Bill were announced at Budget 2012, with legislation published in December 2012 for technical consultation, which received over 250 comments.
Exchequer Secretary to the Treasury, David Gauke MP, said:
" This year’s Finance Bill demonstrates the Coalition Government’s commitment to creating a tax system that is fairer, promotes growth and competitiveness and rewards work. These measures will equip us to compete in the global race and create an aspiration nation. They also demonstrate the Government’s commitment to developing tax policy in a transparent manner, consulting wherever possible, which is reflected in the many constructive comments we have had on the draft legislation ".
Integration of tax and NICs
CIPP Policy News Journal
12/04/2013, Page 161 of 362
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