The chancellor has put forward various amendments to the Finance Bill before Parliament, including two new clauses, which will be considered in the House of Commons at report stage on 19 June 2023. Amendments include:
Domestic top-up tax: proposed new clause 4 confirms that Part 4 (domestic top-up tax) of the Act will come into force at the same time as Part 3 (multinational top-up tax) –both will apply for accounting periods starting on or after 31 December 2023;
Full expensing: amendments ensure the provisions for determining the amount of a balancing charge for the purposes of plant or machinery on which full expensing or the 50% first-year allowance have been claimed work as originally intended;
Energy profits levy investment allowances: amendments to ensure the investment allowances work as intended for onshore activities and activities in Northern Ireland;
Pensions – modification of transitional protections: an amendment provides that any amount of a stand-alone lump sum in excess of the maximum amount that could have been paid to the relevant pension scheme member free of tax on 5 April 2023 is subject to income tax at the member’s marginal rate;
Communications data: proposed new clause removes a restriction in the Investigatory Powers Act 2016 which would otherwise hinder the exercise of HMRC’s information powers (for example, under FA 2008 Sch 36). This means that HMRC can use its existing civil powers to acquire information and data for its civil functions to assess and collect tax. HMRC’s TIIN provides further background;
Electricity generator levy: an amendment clarifies the treatment of participants in joint ventures that have exceptional receipts and the interaction with the annual revenue allowance;
VAT – deposit schemes: amendments clarify how VAT is to be accounted for in relation to deposit amounts that are not repaid, and ensure that the VAT liability for unreturned deposit amounts is the same as for the goods when they are sold.
Explanatory notes to the report stage amendments have been published.
The chancellor has put forward various amendments to the Finance Bill before Parliament, including two new clauses, which will be considered in the House of Commons at report stage on 19 June 2023. Amendments include:
Domestic top-up tax: proposed new clause 4 confirms that Part 4 (domestic top-up tax) of the Act will come into force at the same time as Part 3 (multinational top-up tax) –both will apply for accounting periods starting on or after 31 December 2023;
Full expensing: amendments ensure the provisions for determining the amount of a balancing charge for the purposes of plant or machinery on which full expensing or the 50% first-year allowance have been claimed work as originally intended;
Energy profits levy investment allowances: amendments to ensure the investment allowances work as intended for onshore activities and activities in Northern Ireland;
Pensions – modification of transitional protections: an amendment provides that any amount of a stand-alone lump sum in excess of the maximum amount that could have been paid to the relevant pension scheme member free of tax on 5 April 2023 is subject to income tax at the member’s marginal rate;
Communications data: proposed new clause removes a restriction in the Investigatory Powers Act 2016 which would otherwise hinder the exercise of HMRC’s information powers (for example, under FA 2008 Sch 36). This means that HMRC can use its existing civil powers to acquire information and data for its civil functions to assess and collect tax. HMRC’s TIIN provides further background;
Electricity generator levy: an amendment clarifies the treatment of participants in joint ventures that have exceptional receipts and the interaction with the annual revenue allowance;
VAT – deposit schemes: amendments clarify how VAT is to be accounted for in relation to deposit amounts that are not repaid, and ensure that the VAT liability for unreturned deposit amounts is the same as for the goods when they are sold.
Explanatory notes to the report stage amendments have been published.
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