Autumn Statement 2013—Lexis®PSL Tax analysis

8/13/2019 Autumn Statement 2013LexisPSL Tax analysis

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At the same time2 the special regulation,ma4ing po)ers contained in the ?C regime are being

changed to allo) regulations to be made that specify the conditions that )ill need to be met by

?C group companies that elect to transfer their ?C liabilities to other group members7

This minor amendment should allo) such regulations to ensure that the impact of the ?C regime

on companies that are involved in )hole business securitisations is reduced2 by allo)ing ?Cliabilities to be passed around the group so that the companies remain ban4ruptcy remote7

This relaxation is li4ely to be )elcomed and )ill remove the possibility that the regime might apply in

an area in )hich it is not intended to have effect7

The changes made to the grouping rules have effect for accounting periods starting on or after @ ?ecember

$%&'7

The change to the regulation,ma4ing po)ers )ill have effect on or after the date that !inance Bill $%&;

receives royal assent7

?etails of the proposals2 along )ith draft legislation2 can be found in the Changes to the debt cap provisions

Tax Information and Impact -otice 0TII-1 published on @ ?ecember $%&'7

!or an in depth analysis of the ?C regime2 in respect of the group membership rules in particular2 see"The

debt cap()orld)ide groups and the gate)ay test7

*oan relationships and derivative contracts

A number of announcements )ere made in relation to the taxation of corporate debt and derivative contracts7

:odernising the taxation of corporate debt and derivative contracts

The government announced2 at Budget $%&'2 that it )ould carry out a revie) of the loan relationships

0corporate debt1 and derivative contracts regimes )ith the combined aims of redesigning them to be simpler2

clearer and more resistant to tax avoidance7

The Autumn #tatement $%&' contains several specific 0and relatively narro)1 announcements that the

government )ill introduce legislation to"

enhance the anti,avoidance provisions 0ins ;$CTA $%%1 in order to prevent abuse of2 clarify and

rationalise and 0in certain circumstances1 disapply2 the .bond fund/ rules

Broadly2 this anti,avoidance rule applies )here the loan relationships regime interacts )ith the

specialist tax regimes for authorised investment funds 0AI!s1 and offshore funds7

In short2 a companys holdings in AI!s and offshore funds are not normally )ithin the scope of the

loan relationships regime7 Ho)ever2 to prevent companies using AI!s as vehicles to circumvent the

corporate debt regime2 certain holdings2 giving rise to interest distributions 0ie in effect2 distributions

received from a bond fund1 are brought )ithin the regime by treating the holding as rights under a

creditor relationship2 brought into account using a fair value basis of accounting7
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The anti,avoidance provision is triggered )here the investment )as made 0or the liability )as

incurred1 )ith a relevant avoidance intention(ie )here the company ma4es the investment in order

to create 0or increase1 debits or eliminate 0or reduce1 credits7

clarify and rationalise the taxation of corporate partners )here loan relationships and derivative

contracts are held by a partnership2 and

allo)2 in certain circumstances2 corporate investors to disapply the bond fund rules

?etails in respect of each of these areas is a)aited7 *egislation implementing any changes may be introduced

as part of !inance Act $%&; but may be delayed to !inance Act $%&@2 although any simplification of )hat are

complex rules )ill be broadly )elcomed 0Autumn #tatement $%&'2 para $7&$%17

!or an introduction to the rules in this area2 see"?eemed loan relationships(shares accounted for as

liabilities" main ruleand ?eemed loan relationships(shares accounted for as liabilities" exclusions7

Also see the consultation document":odernising the taxation of corporate debt and derivative contracts08une $%&'17

Release of debts

The general rule under the loan relationships regime is that credits and debits arising to a company from its

loan relationships brought into account for tax purposes are those sho)n in its 5AA compliant accounts for

that period7 The general rule2 ho)ever2 does not apply in all circumstances7 In certain important areas2 special

rules re3uire the tax treatment of a companys loan relationships to depart from the treatment in the accounts7

6ne area )here2 subDect to certain special exclusions2 the tax treatment departs from the accounts is )here

the relevant loan relationship is released(ie )here the debt is )ritten off or forgiven in part or its entirety7here the rules apply2 generally in circumstances connected )ith a corporate rescue2 the debtor does not

need to recognise a credit 0and so )ont be taxed on the profit realised as a result of the release17

The government has confirmed that2 )ith effect from $8 -ovember $%&'2 these rules )ill be extended so that

credits2 arising on a release2 )ill not be re3uired to be brought into account )here that release occurs as a

result of the application of any of the stabilisation po)ers contained inart &of Ban4ing Act $%% 0Autumn

#tatement $%&'2 para $7&;=17

!or more information on ho) the tax treatment of loan relationships departs from the accounts )here a loan

relationship is released2 see"*oan relationships(impairment losses and debt releases7

?erivative contracts" contracts for differences

In a very minor amendment2 that )ill extend the scope and application of the derivative contracts regime

0contained in art


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Ban4 levy

The Chancellor announced that legislation )ill be introduced in !inance Bill $%&;"

to set the full rate of the levy to %7&@89 )ith effect from & anuary $%&; 0Autumn #tatement $%&'2

para $7=$1(the announcement of this rise in the rate has already led to concerns that"

o some ban4s might consider redomiciling outside the UK2 and

o it could affect the availability of loans

to ma4e certain other amendments to the ban4 levy2 including amending the base in respect of )hich

the ban4 levy is charged2 )ith effect from anuary $%&@ 0Autumn #tatement $%&'2 para $7='1(this

follo)s a revie) of the ban4 levy earlier in $%&' 0see"$%&' ban4 levy revie)1

Transfer pricing compensating adDustmentsAs previously announced2 the government has confirmed its intention 0Autumn #tatement $%&'2 paras &7'%'

and $7&$


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o modernising the cultural test to align it )ith other :ember #tates tests and support visual

effects and )ider film production2 and

o see4ing state aid clearance 0)hen renotifying the regime in $%&@1 to increase the rate of the

film tax credit to $@9 for all 3ualifying expenditure 0ie including expenditure on large budget

films above $%m1

Associated companies rules

The government )ill introduce legislation in !inance Bill $%&;2 to have effect from & April $%&@2 to remove the

current rules on associated companies and replace them )ith simpler rules based on @&9 group membership

0Autumn #tatement $%&'2 para $7&&;17 !rom & April $%&@2 the main and small profits rate of corporation tax )ill

be harmonised at $%9 and so the need for associated company rules in calculating corporation tax 0CTA $%&%2

s $@1 )ill disappear7 Ho)ever2 )e )ill need to )ait for draft legislation 0possibly on &% ?ecember $%&'1 to see"

the detail of the proposed @&9 test2 and

)hether this change is extended to other uses of the defined term associated company 0such as in

the close company 0CTA $%&%2 s ;;1 or intangible fixed asset de,grouping 0CTA $%%2 s


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member of the partnership7 In a profitable year the partners could allocate more profits to the company in order

to ta4e advantage of the lo)er rate of corporation tax as compared to income tax7 The partners )ould retain

their economic interest in the profits through their o)nership of the companyL they could2 for instance2 )ithdra)

the profits as dividends in a later2 less profitable year7

Under the ne) provisions2 in this situation the individual partners profits )ould2 for tax purposes2 be increasedto reflect the profit they have foregone7

As is so often the case2 the devil is in the detail7 In order to identify the profit that should be reallocated to the

individual partners2 the draft legislation re3uires an assessment of )hat )ould be an appropriate return for any

capital invested2 or services rendered2 by the corporate partner7 This may be problematic to 3uantify2 and there

is a ris4 that the measures )ill go too far7

?raft legislation has also been published to implement the complementary measures countering arrangements

)hich see4 to allocate losses 0as opposed to profits1 to partners paying a higher 0as opposed to lo)er1 rate of

tax7 These have effect from 8 April $%&;7

#ee" artnerships revie)" partnerships )ith mixed membership2 TII- published )ith Autumn #tatement2 @

?ecember $%&'

Corporation tax" amending loss relief provisions

The government has announced that it )ill be including legislation in !inance Bill $%&' )hich )ill amend the

current corporation tax provisions that restrict relief )here there is a change in the o)nership of a company

0CTA $%&%2 art &;17 Although details of the proposed amendments have not been provided2 they are

expected to ease the application of the relevant restrictions 0Autumn #tatement $%&'2 para $7=@17

Change of o)nership is defined as2 broadly2 more than half of the companys ordinary share capital changing

hands7 Currently2 the rules ignore any change of o)nership of a company that remains2 broadly spea4ing2 in

the same corporate group 0CTA $%&%2 s


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Employment taxes and share incentives

Employment intermediaries

The government proposes to amend existing legislation to prevent contrived contracts involving employment

intermediaries that disguise employment as self,employment being used to avoid income tax and -ICs

0Autumn #tatement $%&'2 paras &7'%8 and $7&$17 rovisions )ill be included in !inance Bill $%&;2 to ta4e

effect from April $%&;2 presumably amending the intermediaries legislation relating to personal service

companies 0commonly 4no)n as IR'@10ITEA $%%'2 ss ;=M8&1 and possibly also the legislation relating to

managed service companies0ITEA $%%'2 ss 8&AM8&17

This proposal follo)s the formation2 on &$ -ovember $%&'2 of a House of *ords #elect Committeesee4ing

evidence on the use of personal service companies2 the income tax and -ICs implications2 as )ell as )ider

issues for )or4ers and their clients2 and considering )hether the intermediaries legislation should be reformed7

The Committee aims to finalise its report to the House in :arch $%&;7

?ual employment contracts

rovisions )ill be included in !inance Bill $%&; to ta4e effect from April $%&; preventing high,earning non,

domiciled employees from avoiding tax by artificially splitting the duties of a single employment to shift some of

their employment income offshore and therefore outside the scope of UK tax 0Autumn #tatement $%&'2 paras

&7'%' and $7&$817

Currently non,UK domiciled employees )ho )or4 partly in the UK and partly overseas can enter into separate

employment contracts )ith a vie) to claiming the remittance basis 0and reduce their UK income tax liability1 in

respect of earnings from one such employment the duties of )hich are performed )holly overseas for a foreign

employer 0ITEA $%%'2 s $$17

There is no further detail at present on the proposed legislation except that UK tax )ill be charged on the full

employment income )here a comparable level of tax is not payable overseas on the overseas contract

0Autumn #tatement $%&'2 para $7&$817 It is hoped that these ne) rules )ill not impinge on overseas )or4day

reliefno) available 0underITEA $%%'2 ss $8M$8A1 in respect of duties performed overseas by non,UK

domiciled employees )ho meet the three,year non,residence re3uirement7

-ICs

!ollo)ing the announcement in Budget $%&' of the annual $2%%% employer -ICs allo)ancefrom April $%&;2

the Autumn #tatement $%&' contains three further announcements on -ICs"

the abolition of employer -ICs in relation to existing and ne) employed earners under the age of $&

from April $%&@2 except for those paying higher 0or additional1 rate income tax 0ie those earning more

than the upper earnings limit of ;$2$=@ per year1 in relation to )hom employer -ICs )ill arise as

normal7 *egislation )ill be included in the-ICs Billcurrently before parliament 0Autumn #tatement

$%&'2 paras &7&@ and $7;=1

the introduction2 from 6ctober $%&@2 of ne) class 'A voluntary -ICs to enable pensioners )ho reach

state pension age before 8 April $%&8 to top up their additional pension records 0Autumn #tatement

$%&'2 para $7@812 and
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the government confirmed that a summary of responses and details of next steps )ill be published in

due course follo)ing the consultation0)hich closed on 6ctober $%&'1 on simplifying -ICs

processes for the self,employed and collecting class $ -ICs alongside class ; -ICs and income tax

through self assessment 0Autumn #tatement $%&'2 para $7&&@1

Indirect employee o)nership

!ollo)ing Budget $%&'2 the Autumn #tatement $%&' 0Autumn #tatement $%&'2 para $78%1 confirms that

!inance Bill $%&; )ill introduce three ne) tax reliefs to encourage and promote indirect employee o)nership"

from April $%&;2 disposals of shares that result in a controlling interest in a company being held by an

employee o)nership trust 0such as an employee benefit trust1 )ill be relieved from capital gains tax

the transfer of shares and other assets to employee o)nership trusts )ill be exempt from inheritance

tax provided that certain conditions are met2 and

from 6ctober $%&;2 up to an annual cap of '28%% )orth of bonus payments )ill be exempt from

income tax and -ICs if made to employees of indirectly employee o)ned companies )hich are o)ned

by an employee o)nership trust

#ee" Is employee o)nership here to stay(ne) proposals on indirect o)nershipN

#hare Incentive lans and #ave As Oou Earn limits

The annual limits for H:RC approved #hare Incentive lans 0#Is1 )ill increase 0for the first time in over &%

years1 from April $%&; to"

'28%% 0from '2%%%1 for free shares 0shares a)arded to participants )ithout payment12 and

&2=%% 0from &2@%%1 for partnership shares 0shares ac3uired on behalf of employees out of sums

deducted from their salary1

In addition2 the amount that an employee can contribute to an H:RC approved #ave As Oou Earn 0#AOE1

scheme )ill double from April $%&; to @%%7

0Autumn #tatement $%&'2 para $78&1

6ffice of Tax #implification revie) of employee benefits and

expenses and employee share schemes

!ollo)ing the implementation of four of the uic4 ins identified by the 6ffice of Tax #implification 06T#1 in

their Interim Report on Employee Benefits published on = August $%&'2the government has committed to

deliver an additional nine uic4 ins in anuary $%&; and consider a further ten by the end of this parliament7

#ee the governmentsAutumn #tatement update on implemented and proposed uic4 ins7

The 6T#s list prioritising the ;' uic4 ins can be found here7

As anticipated2 the government has also confirmed its intention in Autumn #tatement $%&' to enact a pac4age

of simplifications proposed by the 6T# in its Revie) of Unapproved #hare #chemes7As yet no details have
http://www.gov.uk/government/consultations/simplifying-the-national-insurance-processes-for-the-self-employedhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OLT&remotekey1=DOC-ID&remotekey2=0OLT_230119&service=DOC-ID&origdpsi=0OLThttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/227088/ots_employee_benefits_interim_report.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/227088/ots_employee_benefits_interim_report.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263822/Quick_Wins_Annex.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/250005/OTS_quick_wins_progress_paper.pdfhttp://www.gov.uk/government/consultations/office-of-tax-simplification-review-of-unapproved-share-schemeshttp://www.gov.uk/government/consultations/office-of-tax-simplification-review-of-unapproved-share-schemeshttp://www.gov.uk/government/consultations/simplifying-the-national-insurance-processes-for-the-self-employedhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OLT&remotekey1=DOC-ID&remotekey2=0OLT_230119&service=DOC-ID&origdpsi=0OLThttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/227088/ots_employee_benefits_interim_report.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263822/Quick_Wins_Annex.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/250005/OTS_quick_wins_progress_paper.pdfhttp://www.gov.uk/government/consultations/office-of-tax-simplification-review-of-unapproved-share-schemes


12/21

been announced as to )hich specific 6T# proposals )ill form part of this pac4age but )e understand it )ill

consist of five recommendations7 The changes )ill ta4e effect during $%&;7

0Autumn #tatement $%&'2 paras $7&&&,$7&&$1

Incentivised investment

#ocial investment tax relief

!ollo)ing introduction in Budget $%&' and a consultation on social investment tax reliefin une to #eptember

$%&'2 the government has announced that it )ill introduce a ne) tax relief for e3uity and certain debt

investments in charities2 community interest companies and community benefit societies )ith the aim of

encouraging individuals to invest in such social organisations7 !ollo)ing consultation2 investment in social

impact bonds issued by limited companies )ill also be eligible for the relief7

The government plans to publish a road map for social investment in anuary $%&; setting out its next steps in

relation to social investment7 Ho)ever2 it is intended that provisions implementing the relief )ill be included in

!inance Bill $%&; and the relief )ill be available )ith effect from April $%&; 0Autumn #tatement $%&'2 paras

&7&


13/21

Real Estate Investment Trusts 0REITs1

!ollo)ing a series of three consultations that finally concluded on &; une $%&'2 the government has

confirmed that Real Estate Investment Trusts 0REITs1 )ill be included )ithin the definition of institutional

investor 0for the purposes of the REIT regime contained inart &$of CTA $%&%1 )ith effect from & April $%&;

0Autumn #tatement $%&'2 para $7&%17

The change2 li4ely to be )idely )elcomed by existing REITs and property companies that may be considering

converting into a REIT2 )ill allo) a REIT to invest in another REIT in a tax efficient )ay(in essence2 )ithout

this change2 a REIT investing in another REIT )ould be subDect to tax on the property income distribution 0I?1

it receives7 Although this means that the investing REIT does not necessarily have to distribute the income

received as its o)n I?2 the tax transparency of the structure is lost7

It is hoped the amendment announced today )ill enhance the UKs REIT regime 0by avoiding tax stic4ing in a

REIT fund vehicle12 promote investment diversification and encourage a greater number of property companies

to consider conversion into a REIT7

!or a detailed analysis of the existing REIT regime2 see" Real estate investment trusts(summary7

Also see" the latest 0informal1 consultation on the issue"Including Real Estate Investment Trusts 0REITs1 as

institutional investors0$% :arch $%&'17

#?*T charities relief and Doint purchasers

Relief from stamp duty land tax 0#?*T1 is available on UK property ac3uisitions )here the purchaser is a

charity2 subDect to satisfaction of various conditions7 The Court of Appeal recently confirmed in Pollen Estate

Trustee Companythat )here there is a Doint property purchase and one 0or more1 of the Doint buyers is acharity2 #?*T is not payable on the portion of the purchase attributable to the charity 0or charities17 The Court

of Appeal held that the #?*T legislation should be purposively interpreted so that the correct construction of

the !A $%%'2 #ch =2 para &is that a land transaction is exempt from charge .to the extent that/ the purchaser is

a charity7

!ollo)ing this decision2 the Autumn #tatement $%&' confirms that the #?*T legislation )ill be amended to

reflect this decision )ith the effect that2 )here a charity purchases a property Dointly )ith a non,charity2 the

charity )ill be able to claim relief from #?*T on its proportion of a property purchase7 The amendments to the

#?*T legislation )ill be included in !inance Bill $%&; 0Autumn #tatement $%&'2 para $7817

Business premises renovation allo)ance 0BRA1

!ollo)ing a technical note on BRApublished on &= uly $%&'2 the government )ill include amendments in

!inance Bill $%&; to simplify the scheme2 ma4e it more certain in its application and reduce the ris4 of the

scheme being used in tax planning structures7

The BRA gives investors tax relief for capital costs involved in regenerating buildings in designated deprived

or disadvantaged areas for business use7 It provides &%%9 allo)ances on the capital costs of renovation7 The

technical note outlined four main areas of concern for H:RC in ho) BRA )as being used in practice

follo)ing ?6TA# disclosures7

To address these concerns2 the technical note included proposals for both specific pieces of legislation to

clarify the la) and close perceived loopholes and also a targeted anti,avoidance rule7 Ho)ever2 )e )ill need to
http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.6477472325400158&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_4a%25part%2512%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.6477472325400158&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_4a%25part%2512%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.6477472325400158&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_4a%25part%2512%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OLV&remotekey1=DOC-ID&remotekey2=0OLV_227841&service=DOC-ID&origdpsi=0OLThttp://www.gov.uk/government/consultations/including-real-estate-investment-trusts-reits-as-institutional-investorshttp://www.gov.uk/government/consultations/including-real-estate-investment-trusts-reits-as-institutional-investorshttp://www.gov.uk/government/consultations/including-real-estate-investment-trusts-reits-as-institutional-investorshttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.989259899674483&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23schedule%258%25num%252003_14a%25sched%258%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.989259899674483&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23schedule%258%25num%252003_14a%25sched%258%25http://www.hmrc.gov.uk/drafts/bus-premises-renovation-allowances.pdfhttp://www.hmrc.gov.uk/drafts/bus-premises-renovation-allowances.pdfhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.6477472325400158&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_4a%25part%2512%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OLV&remotekey1=DOC-ID&remotekey2=0OLV_227841&service=DOC-ID&origdpsi=0OLThttp://www.gov.uk/government/consultations/including-real-estate-investment-trusts-reits-as-institutional-investorshttp://www.gov.uk/government/consultations/including-real-estate-investment-trusts-reits-as-institutional-investorshttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.989259899674483&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23schedule%258%25num%252003_14a%25sched%258%25http://www.hmrc.gov.uk/drafts/bus-premises-renovation-allowances.pdf


14/21


15/21

re3uires procedural safeguards to be follo)ed prior to naming a ban4 as non,compliant in an annual

report on the Code(these procedural safeguards include"

o re3uiring H:RC to publish and follo) a protocol2 called the governance protocol2 in

operating the Code and listing a ban4 as non,compliant in an annual report(the protocol2

among other things2 ma4es it clear that any transaction in respect of )hich a counteractionnotice has been given under the 5AAR2 and in respect of )hich all or a maDority of the

members of a 5AAR advisory sub,panel have issued an opinion or opinions that the

arrangements are not a reasonable course of action2 is considered to constitute a breach of

the Code

o obtaining a report from a revie)er )ho is independent of H:RC 0an independent revie)er1

on )hether the ban4 has breached the Code and should be named as non,compliant before

H:RC ma4es the final decision

o )here H:RC has come to a different decision to that of the independent revie)er2 H:RC

must"

have compelling reasons for ta4ing a different decision2 such as the independent

revie)ers determination being unreasonable

set out its reasons for this and2 if litigation ensues2 the burden of proof is on H:RC

to sho) that it )as la)ful for it to come to a different decision2 and

mention in the annual report that H:RCs decision differed from that of the

independent revie)er2 and

re3uires H:RC to notify the ban4 in )riting of its decision to name the ban4 as non,compliant and todelay publishing the report for at least % days after the day on )hich the notice is given

#ee" draft !inance Bill $%&; legislation on the ban4ing code of practice on taxationand Autumn #tatement

$%&'2 para $7&$'7

Along )ith the draft legislation2 the government has also published"

a list of those ban4s )hich have unconditionally adopted or readopted the code as at @pm on ;

?ecember $%&' 0#ee" *ist of ban4s that have adopted the Code as at ; ?ecember $%&'1

a revised governance protocol )hich2 )ith effect from @ ?ecember $%&'2 replaces the $8 :arch $%&$version of the protocol 0#ee"5overnance rotocol" @ ?ecember $%&'1(it is this protocol that sets out

the process for H:RC to follo) in determining )hether a participating ban4"

o has breached the Code2 and

o from $%&@2 should be named in H:RCs annual report2 and

a document entitled"Establishing H:RCs vie) on a ban4s compliance )ith the code of practice on

taxation for ban4s

#ee" H:RCs )eb page on the ban4ing code of practicefor the Code and the $%&' consultation onstrengthening the Code )hich underlies the changes announced in the Autumn #tatement $%&'7
http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263632/Code_of_practice_on_taxation_for_banks.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263632/Code_of_practice_on_taxation_for_banks.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263640/Code_-_List_of_Adopters.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263640/Code_-_List_of_Adopters.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263642/Governance_Protocol.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263642/Governance_Protocol.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263641/Background_to_the_Code.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263641/Background_to_the_Code.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263641/Background_to_the_Code.pdfhttp://www.hmrc.gov.uk/thelibrary/bank-code-practice.htmhttp://www.hmrc.gov.uk/thelibrary/bank-code-practice.htmhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263632/Code_of_practice_on_taxation_for_banks.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263640/Code_-_List_of_Adopters.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263642/Governance_Protocol.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263641/Background_to_the_Code.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263641/Background_to_the_Code.pdfhttp://www.hmrc.gov.uk/thelibrary/bank-code-practice.htm


16/21

Avoidance schemes using total return s)aps

!inance Bill $%&; )ill include legislation to counteract the use of avoidance schemes that utilise total return

s)aps lin4ed to company profits7 The measures target schemes )here t)o group companies are party to

derivative arrangements 0although not necessarily at the same time1 and one ma4es payments to the other

that are2 in effect2 a transfer of 0all or part of1 the profits of a company )ithin their group7 The legislation2 )hich

)ill apply from @ ?ecember $%&' to schemes entered into on any date2 )ill prevent any deduction being given

for the payments 0Autumn #tatement $%&'2 para $7&&817

#ee"Avoidance schemes using total return s)aps

?ouble taxation relief

T)o anti,avoidance measures relating to double tax relief )ill be included in !inance Bill $%&; 0Autumn

#tatement $%&'2 para $7&&17

The first measure relates to repayments from a tax authority made to a person as part of a scheme7 Under the

existing legislation2 the amount of relief that can be claimed 0)hether by )ay of a credit against UK tax or as a

deduction from foreign income assessable to UK tax1 for a payment of foreign tax is reduced )here a payment

in respect of that foreign tax is made by a tax authority to either the claimant or a connected person 0TI6A

$%&%2 ss ';and&&$17 This )ill be extended to include )here a payment is made to another 0unconnected1

person as a conse3uence of a scheme that has been entered into7 This change is in response to attempts to

circumvent the existing legislation by entering into schemes that result in the relevant payment being made to

an unconnected person7 The ne) legislation )ill have effect in respect of payments made by the foreign tax

authority on or after @ ?ecember $%&'7

The second measure relates to the cap on the amount of relief that can be claimed against UK corporation taxfor foreign tax paid in respect of non,trading credits from a loan relationship 0such as foreign )ithholding tax on

interest under a loan1 or an intangible fixed asset 0TI6A $%&%2 s ;$17 The legislation in !inance Bill $%&; )ill

clarify that the amount of relief for foreign tax on a non,trading credit from a loan relationship or intangible fixed

asset is limited to the amount of UK tax on that net amount of the credit after deducting related debits7 The

government says this is in response to avoidance schemes that attempt to exploit mismatches bet)een the

foreign and UK tax treatment of items of income in order to effectively cross,credit the foreign tax against UK

tax on other income7 This measure relates to accounting periods beginning on or after @ ?ecember $%&'7

here an accounting period straddles this date2 the rules )ill apply as if there are t)o accounting periods , one

relating to the period before @ ?ecember $%&' and one relating to the period on or after that date7

#ee" ?ouble taxation relief" revenue protection

*oss buying

The government has made a statement about the commencement provisions for certain of the loss,buying

anti,avoidance measures announced at Budget $%&' and legislated in!A $%&'7The statement 0Autumn

#tatement $%&'2 para $7&$@1 appears to relate to the commencement provisions for"

capital allo)ance buying 0!A $%&'2 #ch $82 para &'12 and

transfer of deductions 0!A $%&'2 #ch &;2 para '1
http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263624/Avoidance_schemes_using_total_return_swaps.pdfhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8934695690840234&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%2534%25section%2534%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8934695690840234&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%2534%25section%2534%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8934695690840234&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%2534%25section%2534%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.9029560041267843&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%25112%25section%25112%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.9029560041267843&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%25112%25section%25112%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8634233107097797&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%2542%25section%2542%25http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263625/Double_taxation_relief_revenue_protection.pdfhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.3814709183550594&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252013_29a_Title%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.3814709183550594&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252013_29a_Title%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.3814709183550594&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252013_29a_Title%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.9473481907525773&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23schedule%2526%25num%252013_29a%25sched%2526%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8865591241133202&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23schedule%2514%25num%252013_29a%25sched%2514%25http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263624/Avoidance_schemes_using_total_return_swaps.pdfhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8934695690840234&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%2534%25section%2534%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8934695690840234&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%2534%25section%2534%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.9029560041267843&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%25112%25section%25112%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8634233107097797&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252010_8a%25sect%2542%25section%2542%25http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263625/Double_taxation_relief_revenue_protection.pdfhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.3814709183550594&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23num%252013_29a_Title%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.9473481907525773&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23schedule%2526%25num%252013_29a%25sched%2526%25http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.8865591241133202&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UK_ACTS%23schedule%2514%25num%252013_29a%25sched%2514%25


17/21

both of )hich )ere amended late in the parliamentary process of !inance Bill $%&' to exclude arrangements

)here there )as common understanding bet)een the parties on the principal terms of the change of

o)nership prior to the announcement on $% :arch $%&'7 Todays statement 0)hich does not suggest that any

ne) changes are proposed beyond these existing transitional provisions1 is lin4ed )ith a fiscal impact 0;8 in

Table $7& of the Autumn #tatement $%&'1 of '% million less tax revenue in $%&',&;7 This suggests that the

change to the commencement provisions excluded a number of transactions that the government hadoriginally calculated )ould be included in the additional revenue arising from the measures7

Tax avoidance schemes(disclosures2 penalties and payment of

disputed tax

High,ris4 promoters

!inance Bill $%&; )ill implement the governments proposal2 contained in the Raising the sta4es consultation

document published on &$ August $%&'2 to amend the ?6TA# 0disclosure of tax avoidance schemes1 rules to

introduce ne) obligations on high,ris4 promoters 0Autumn #tatement $%&'2 para $7&'


18/21

to issue a pay no) notice re3uiring the taxpayer to pay the disputed tax2 rather than )aiting for the

matter to be settled 0Autumn #tatement $%&'2 para $7&'1

The first of these measures 0follo)er penalties1 )as in the Raising the sta4es consultation document7 The

second 0pay no) notices1 is ne) for the Autumn #tatement $%&' and comes in the )a4e of the #upremeCourts decision in Cotter F$%&'G UK#C 82 in )hich it )as held that in some 0currently fairly limited1

circumstances H:RC is entitled to enforce payment of a tax debt2 and to )ithhold tax relief arising from a tax

avoidance scheme2 )hile it is investigating the scheme7

The Autumn #tatement $%&' indicates that the government )ill also consult on issuing pay no) notices in a

)ider range of circumstances7

#ee" Raising the sta4es on tax avoidance2 consultation document2 &$ August $%&'2and on the Cottercase

see"#upreme Court considers claims for loss relief

Tax evasion

6ffshore evasion(use of exchanged information

In recent months2 the UK has entered into automatic tax information sharing agreements )ith most of the UKs

Cro)n ?ependencies and 6verseas Territories 0the Isle of :an2 5uernsey2 ersey2 the Cayman Islands2

5ibraltar2 Bermuda2 :ontserrat2 the Tur4s and Caicos Islands and the British Jirgin Islands" only Anguilla has

yet to sign up17 #ee"H:RCs UK !ATCA indexand Tax transparency" )hat the government is doing

internationally to reduce tax avoidance and evasion 0H: Treasury timeline17

H:RC is no) addressing the 3uestion of ho) best to ma4e use of the information it receives under these ne)

agreements7 It )ill consult2 at the time of Budget $%&;2 on some enhanced sanctions for taxpayers )ho hide

money offshore 0Autumn #tatement $%&'2 paras $7&'$ and $7&''17

Register of company beneficial o)nership

As previously announced2 the UK )ill create a publicly accessible central registry of information on company

beneficial o)nership7 This is intended to help combat tax evasion2 money laundering and other crimes 0Autumn

#tatement $%&'2 para &7'&;17

6EC?(Base Erosion and rofit #hifting 0BE#1

The government has reiterated its commitment to )or4 )ith other countries on the action points identified in the

6EC?s Action lan on Base Erosion and rofit #hifting 0published by the 6EC? in uly $%&' and endorsed by

the 5$% in #eptember1 0Autumn #tatement $%&'2 para &7'%%17

-o specific announcement has been made about ho) the UK )ill implement the Action lan7 Ho)ever2 the

6EC?s )or4 in this area forms the context for the UKs recent activity in the field of tax transparency 0including

the automatic tax information sharing agreements described in the previous section17

rivate client
http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.9819520843280457&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UKSC%23sel1%252013%25page%2569%25year%252013%25http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/227763/130807_condoc_Raising_the_stakes_on_tax_avoidance.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/227763/130807_condoc_Raising_the_stakes_on_tax_avoidance.pdfhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OLT&remotekey1=DOC-ID&remotekey2=0OLT_246076&service=DOC-ID&origdpsi=0OLThttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OLT&remotekey1=DOC-ID&remotekey2=0OLT_246076&service=DOC-ID&origdpsi=0OLThttp://www.hmrc.gov.uk/fatca/index.htmhttp://www.hmrc.gov.uk/fatca/index.htmhttp://embed.verite.co/timeline/?source=0AqU9_JLgk8C8dE9YWXRSbHoyS3liMEdfR3puM09Nanc&font=Bevan-PotanoSans&maptype=toner&=en&height=650http://embed.verite.co/timeline/?source=0AqU9_JLgk8C8dE9YWXRSbHoyS3liMEdfR3puM09Nanc&font=Bevan-PotanoSans&maptype=toner&=en&height=650http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?A=0.9819520843280457&bct=A&service=citation&risb=&langcountry=GB&linkInfo=F%23GB%23UKSC%23sel1%252013%25page%2569%25year%252013%25http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/227763/130807_condoc_Raising_the_stakes_on_tax_avoidance.pdfhttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OLT&remotekey1=DOC-ID&remotekey2=0OLT_246076&service=DOC-ID&origdpsi=0OLThttp://www.hmrc.gov.uk/fatca/index.htmhttp://embed.verite.co/timeline/?source=0AqU9_JLgk8C8dE9YWXRSbHoyS3liMEdfR3puM09Nanc&font=Bevan-PotanoSans&maptype=toner&=en&height=650http://embed.verite.co/timeline/?source=0AqU9_JLgk8C8dE9YWXRSbHoyS3liMEdfR3puM09Nanc&font=Bevan-PotanoSans&maptype=toner&=en&height=650


19/21

A full briefing on private client announcements in the Autumn #tatement $%&' can be found in"rivate client

briefing" Autumn #tatement $%&'7

Key highlights include"

Income tax rates and thresholds

*nome tax rates an! 'ersonal allo)ane

2013(1+ Tax

,ear

201+(15 Tax

,ear

Tax rate *nome ban!s Tax rate *nome ban!s

Personal allo)ane for those )hose inome

!oes not exee! -100.000 %9 %M2;;% %9 %M&%2%%%

asi rate $%9 Up to '$2%&% $%9 Up to '&2=8@

i&her rate ;%9

'$2%&&M

&@%2%%% ;%9

'&2=88M

&@%2%%%

A!!itional rate @%9 6ver &@%2%%% ;@9 6ver &@%2%%%

Q This table only includes the personal allo)ance applicable to those born on or after 8 April &;=7 The

personal allo)ance for those born bet)een 8 April &'= and @ April &;= remains unchanged at &%2@%% and

the personal allo)ance for those born before 8 April &'= remains unchanged at &%288%7

QQ These figures ignore the effect of the personal allo)ance7 The combined effect of"

the amount of income that is subDect to the basic rate of income tax being reduced to '&2=8@ 0from

'$2%&%12 and

the higher personal allo)ance

is that the threshold at )hich the higher rate of tax )ill start to apply )ill be ;&2=88 0up from ;&2;@&17

The information in this table comes from the document published on H: Treasurys )ebsite containingtables

confirming tax and tax credit rates and thresholds for $%&;,&@7

C5T for non,residents

As )idely predicted2 the government has confirmed its intention to introduce C5T on future gains made by

non,residents disposing of UK residential property from April $%&@ 0Autumn #tatement $%&'2 para $7@17 -on,

residents are currently exempt from C5T on gains made on UK property7 The government plans to open a

consultation on ho) best to introduce this ne) C5T charge in early $%&;7

The fact that the introduction of this measure is delayed until April $%&@ means that it is unli4ely to have an

immediate effect on the housing mar4et7

The government does not expect to raise money from this ne) charge until $%&8>&< although it expects to

receive annual revenues of around &7

It is anticipated that this charge )ill hit non,residents from lo) tax Durisdictions harder than those from higher

tax Durisdictions such as Europe or the U#7 This is because many non,residents from higher tax Durisdictions
http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OMK&remotekey1=DOC-ID&remotekey2=0OMK_251282&service=DOC-ID&origdpsi=0OLThttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OMK&remotekey1=DOC-ID&remotekey2=0OMK_251282&service=DOC-ID&origdpsi=0OLThttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OMK&remotekey1=DOC-ID&remotekey2=0OMK_251282&service=DOC-ID&origdpsi=0OLThttp://https/www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2014-15/tax-and-tax-credit-rates-and-thresholds-for-2014-15http://https/www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2014-15/tax-and-tax-credit-rates-and-thresholds-for-2014-15http://https/www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2014-15/tax-and-tax-credit-rates-and-thresholds-for-2014-15http://https/www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2014-15/tax-and-tax-credit-rates-and-thresholds-for-2014-15http://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OMK&remotekey1=DOC-ID&remotekey2=0OMK_251282&service=DOC-ID&origdpsi=0OLThttp://ppc0.lexisnexis.com/uk/lexispsl/tax/document/393772/5B0C-DSV1-F189-J29C-00000-00/linkHandler.faces?ps=null&bct=A&homeCsi=0&A=0.550474485561546&urlEnc=ISO-8859-1&&dpsi=0OMK&remotekey1=DOC-ID&remotekey2=0OMK_251282&service=DOC-ID&origdpsi=0OLThttp://https/www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2014-15/tax-and-tax-credit-rates-and-thresholds-for-2014-15http://https/www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2014-15/tax-and-tax-credit-rates-and-thresholds-for-2014-15


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already pay an e3uivalent local tax on UK residential property gains and )ill therefore be able to claim a refund

of some or all of the ne) UK tax charge under the relevant double tax treaty7 In contrast2 a non,resident )ho

currently pays no tax on gains realised on the sale of UK property2 )ill really notice the ne) charge7

Individual savings accounts

-e) annual subscription limits

The Chancellor has announced that the I#A2 unior I#A and Child Trust !und annual subscription limits )ill be

increased in line )ith the CI7 The $%&;,&@ I#A limit )ill be increased to &&2==%2 half of )hich can be saved

in a cash I#A7 The unior I#A and Child Trust !und limits )ill both be increased to '2=;% 0Autumn #tatement

$%&'2 para $7@@17

Retail bond eligibility for stoc4s and shares I#As

The government has indicated that it is exploring the possibility of increasing the number of retail bonds eligible

for stoc4s and shares I#As by reducing the re3uirement that such securities must have a remaining maturity

above five years 0Autumn #tatement $%&'2 para $7&@&17

Tax administration

JAT returns and electronic filing

The government )ill consult on amendments to the JAT regime to allo) alternative options for JAT registered

businesses to file JAT returns 0Autumn #tatement $%&'2 para $7817 This follo)s a series of cases )here

taxpayers contested the re3uirement for various tax returns and payments of tax in the UK to be made by

electronic means on the grounds that such re3uirement is a breach of the European Convention on Human

Rights7 In particular2 in the test case *H Bishop Electric Company2 a number of taxpayers appealed against

H:RC notices re3uiring them to pay JAT and file JAT returns electronically7 The !irst,tier Tribunal accepted

the taxpayers argument that the obligation to file tax returns online )as a breach of their human rights7

6T# revie) of tax administration

The government has as4ed the 6ffice of Tax #implification 06T#1 to carry out a ne) revie) on measures to

further improve the competitiveness of UK tax administration2 )ith particular regard to the orld Ban4s ?oing

Business reports2 )hich includes a report produced Dointly )ith C called aying Taxes $%&;0Autumn

#tatement $%&'2 para $7&&%17 That report compares the tax systems of &= economies )orld)ide2 loo4ing in

particular at three measures" total tax rates2 time to comply and number of tax payments7 The most recent

report ran4ed the UK at &; of the &= economies 0up t)o places from &8 the year before17

The government has published theterms of reference for this revie)2 )hich is expected to cover all types of

business but focus on #:Es2 and to be released by summer $%&;7

ublication of anonymised H:RC data
http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Special-Reports/Paying-Taxes-2014.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263812/OTS_review_of_competitiveness_of_UK_tax_admin_final_TORs.pdfhttp://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Special-Reports/Paying-Taxes-2014.pdfhttp://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263812/OTS_review_of_competitiveness_of_UK_tax_admin_final_TORs.pdf


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H:RC is pressing ahead )ith the proposal2 published for consultation on &< uly $%&'2 to publish anonymised

data 0on2 for instance2 the amount of tax collected from certain categories of taxpayer17 H:RC is currently

prohibited from releasing information in this )ay2 but considers that there may be benefits in releasing certain

categories of data that do not identify individual taxpayers7 This could be used2 for example2 for research2 or for

policy development across different government departments7

?raft legislation )ill be issued for further consultation in early $%&;7

The government is also considering releasing non,financial JAT registration data2 and anticipates that this

could be used by credit reference agencies 0Autumn #tatement $%&'2 para $7&;

Autumn Statement 2013—Lexis®PSL Tax analysis

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