The Finance Bill has now completed all its stages in the House of Commons and the first reading in the House of Lords. As the Lords are not able to make changes to Finance Bills, the text of the Bill is now final (and is available via lexisurl.com/b2lp8). The date of Royal Assent has not been announced but it must be no later than 18 July, when the Commons rises for Summer recess.
Close company loans to participators consultation
The government is consulting until 2 October 2013 on proposals for reform of the tax charge on close company loans to participators. Among the four options being considered are: increasing the rate of the charge from the current level of 25%; and two alternatives involving replacement of the current repayable charge with a permanent charge at a lower rate, assessed on an annual basis.
Consultation on tax reliefs for employee ownership
The government is consulting until 26 September 2013 on proposals for two new tax reliefs in connection with indirect employee ownership structures, such as employee benefit trusts. These are:
CGT relief on the sale of a controlling interest in a business into such a structure; and
income tax and NICs exemption for payments to employees out of a trust set up for the benefit of the company’s employees.
As announced at Budget 2013, legislation for these reliefs will be included in Finance Bill 2014.
Bank levy review
The government is consulting until 26 September 2013 on a general review of the bank levy, which is concerned to ensure that the levy is operating as efficiently as possible in line with its objectives. This review was promised at the time the levy was introduced in January 2011.
‘Tainted charity donations’ guidance
HMRC has published guidance in draft form on the new ‘tainted charity donations’ rules, introduced by FA 2011, which replaced most of the ‘substantial donors to charity’ rules from April 2013. The rules remove the usual charity tax reliefs where donors seek to obtain a financial advantage in return for donations. The guidance highlights any differences in treatment between income tax, corporation tax and capital gains tax.
Employee share trusts
The government has published a model trust deed, known as an ‘employee share trust’ (EST), for use by businesses wishing to introduce a trust-based form of employee ownership. Following the recommendations of the Nuttall review, HMRC has issued a tax guide providing an introduction to the main tax issues associated with using this form of trust
Guidance on purchase of own shares by non-quoted companies
HMRC has published a guidance note which outlines the main tax issues for employees selling shares to their employer as part of an employee ownership arrangement. The guidance is prompted by the recent amendment of the Companies Act to facilitate the purchase of a company’s own shares with effect from 30 April 2013.
Gift aid and digital giving
The government is consulting until 20 September 2013 on ways to make it easier to claim gift aid on small donations to charity through digital channels, such as those donations made online or through text messages. Proposals include: shortening the gift aid declaration; allowing non-charity ‘intermediaries’ (i.e. mobile or online operators) to play a greater role in collecting and distributing gift aid; and introducing a single gift aid declaration held in a ‘universal gift aid declaration database’.
‘Tax return catch-up’ campaign
HMRC’s latest disclosure campaign offers those who have received but not yet completed a self-assessment return for any year up to 2011/12 to pay any tax they owe by 15 October 2013.
Home >Articles > In brief: FB 2013; close company loans; employee ownership; bank levy; 'tainted' donations; share trusts; gift aid; 'catch-up' campaign
In brief: FB 2013; close company loans; employee ownership; bank levy; 'tainted' donations; share trusts; gift aid; 'catch-up' campaign
The Finance Bill has now completed all its stages in the House of Commons and the first reading in the House of Lords. As the Lords are not able to make changes to Finance Bills, the text of the Bill is now final (and is available via lexisurl.com/b2lp8). The date of Royal Assent has not been announced but it must be no later than 18 July, when the Commons rises for Summer recess.
Close company loans to participators consultation
The government is consulting until 2 October 2013 on proposals for reform of the tax charge on close company loans to participators. Among the four options being considered are: increasing the rate of the charge from the current level of 25%; and two alternatives involving replacement of the current repayable charge with a permanent charge at a lower rate, assessed on an annual basis.
Consultation on tax reliefs for employee ownership
The government is consulting until 26 September 2013 on proposals for two new tax reliefs in connection with indirect employee ownership structures, such as employee benefit trusts. These are:
CGT relief on the sale of a controlling interest in a business into such a structure; and
income tax and NICs exemption for payments to employees out of a trust set up for the benefit of the company’s employees.
As announced at Budget 2013, legislation for these reliefs will be included in Finance Bill 2014.
Bank levy review
The government is consulting until 26 September 2013 on a general review of the bank levy, which is concerned to ensure that the levy is operating as efficiently as possible in line with its objectives. This review was promised at the time the levy was introduced in January 2011.
‘Tainted charity donations’ guidance
HMRC has published guidance in draft form on the new ‘tainted charity donations’ rules, introduced by FA 2011, which replaced most of the ‘substantial donors to charity’ rules from April 2013. The rules remove the usual charity tax reliefs where donors seek to obtain a financial advantage in return for donations. The guidance highlights any differences in treatment between income tax, corporation tax and capital gains tax.
Employee share trusts
The government has published a model trust deed, known as an ‘employee share trust’ (EST), for use by businesses wishing to introduce a trust-based form of employee ownership. Following the recommendations of the Nuttall review, HMRC has issued a tax guide providing an introduction to the main tax issues associated with using this form of trust
Guidance on purchase of own shares by non-quoted companies
HMRC has published a guidance note which outlines the main tax issues for employees selling shares to their employer as part of an employee ownership arrangement. The guidance is prompted by the recent amendment of the Companies Act to facilitate the purchase of a company’s own shares with effect from 30 April 2013.
Gift aid and digital giving
The government is consulting until 20 September 2013 on ways to make it easier to claim gift aid on small donations to charity through digital channels, such as those donations made online or through text messages. Proposals include: shortening the gift aid declaration; allowing non-charity ‘intermediaries’ (i.e. mobile or online operators) to play a greater role in collecting and distributing gift aid; and introducing a single gift aid declaration held in a ‘universal gift aid declaration database’.
‘Tax return catch-up’ campaign
HMRC’s latest disclosure campaign offers those who have received but not yet completed a self-assessment return for any year up to 2011/12 to pay any tax they owe by 15 October 2013.
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