As part of the 2011 Budget the government announced its intention to introduce a full statutory definition of tax residence for individuals, with the main objective of providing a more certain system, backed up with a clear statutory residence test that would prove to be much simpler for the taxpayer and employers to use. The consultation ran for 12 weeks from 17 June 2011 and closed on 9 September following which, the government made a further announcement in December 2011, that it would defer any introduction of the statutory residence test and reform to ordinary residence until April 2013, to allow more time for further consultation. In June 2012, the government issued its response to that consultation. Included in the response, is draft legislation on the statutory residence test and reforms to ordinary residence, along with details of responses original received to the earlier consultation, which have been included to demonstrate how the views collated from the earlier consultation have informed policy development thus far. The current consultation is also now seeking further views from interested parties on the detailed policy and draft legislation for a statutory residence test and reforms to ordinary residence. If you have views on any of the issues raised in the consultation document that you wish to share with the Policy Team, please contact Samantha Mann, Senior Policy & Research Officer at policy@cipp.org.uk .
The consultation closes on 13 September 2012.
STATUTORY RESIDENCE TEST DRAFT GUIDANCE
20 December 2012
As previously mentioned in our news on the draft Finance Bill 2013 legislation will be introduced to put the rules which determine an individual's tax residence on a statutory basis. Draft guidance has been published to help individuals apply the statutory residence test and on eligibility for overseas workday relief.
Guidance Note: Overseas Workday Relief (OWR)
Guidance Note: Statutory Residence Test (SRT)
Comments are invited on all parts of the guidance, in particular on its scope and coverage, by 6 February 2013
Construction Industry
CONSUTRUCTION INDUSTRY HOLIDAY SCHEME
18 January 2012
For those of you who work within the Construction Industry and have used independently managed central holiday pay funds, this is a reminder that the NICs exemption will be withdrawn from 30 October 2012. These schemes involve employers contributing to an independently managed central fund which then pays out employees' holiday pay. They are only to be used by construction sector businesses and are limited in use to those employees personally involved in construction operations.
CIPP Policy News Journal
12/04/2013, Page 35 of 362
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