The announcement concerns individuals using the remittance basis of taxation. The law provides that anyone obtaining a loan which is secured using foreign income or gains that remain overseas is required to pay tax on any part of that loan which is remitted to the UK. There is an existing concession for commercial loan arrangements, but HMRC have now withdrawn this concession because of concerns that it has been exploited for uncommercial purposes.
Employee Benefit Trust update
18 August 2014
HMRC has announced the withdrawal of the Employee Benefit Trust settlement opportunity (EBTSO) from 31 March 2015.
The HMRC announcement explains that over 700 employer-level users have taken advantage of this opportunity since it was publicised, and of course the numbers of affected employees will be considerably greater than that. HMRC believe that enough time has now been allowed for others to agree, which is why they have announced a closing date.
Liberal Democrat tax and national insurance promises
18 August 2014
Danny Alexander has announced that a Liberal Democrat government will make further cuts in Income Tax and reduce National Insurance.
Liberal Democrats have made raising the personal tax allowance to £12,500 and subsequently cutting National Insurance contributions a manifesto commitment.
Increasing the personal tax allowance would benefit 30m workers and 6m pensioners. And once the increase is made, Liberal Democrats say that they will work towards raising the level that people start paying employee National Insurance.
CIPP survey restricting non-residents’ entitlement to the UK personal allowance
19 August 2014
The CIPP policy team have created a survey to collect member views as to the government giving consideration to the restriction of access to the UK personal allowance for non- residents. This consultation is at stage 1 of the consultation process, whereby it looks to set out objectives and identify options and as such is making no specific proposals. The high level principles of this consultation exercise and for any policy that is taken forward include: fairness: the effect of the UK Personal Allowance must be fair for all UK taxpayers and the Exchequer simplicity: any change must be as simple as possible for those people and businesses who would be affected to understand and implement competitiveness: any restriction to the UK Personal Allowance must not undermine the competitiveness of the UK as an international destination for work and investment.
CIPP Policy News Journal
08/04/2015, Page 270 of 521
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