Finance Bill 2011: Consultation

The Treasury has launched a consultation on draft legislation for Finance Bill 2011, and published the Government’s response to the consultation ‘Tax policy making: a new approach’.

Comments are invited by 9 February on draft legislation and explanatory notes including 18 corporate tax measures and five anti-avoidance measures. The corporate tax measures relate to:

• Charge and main rate for financial year 2012;
• Small profits rate and fractions for financial year 2011;
• Plant and machinery writing-down allowances;
• Capital allowances, annual investment allowance;
• Interim CFC reform;
• Taxation of foreign branches;
• Bank levy;
• Corporate capital gains, value shifting;
• Corporate capital gains, restriction on set-off of pre-entry losses;
• Corporate capital gains, company ceasing to be member of group;
• Associated companies;
• Investment trust companies modernisation;
• Stamp duty reserve tax, interests in collective investment schemes;
• Oil and gas;
• Tonnage tax and leasing;
• Transfer pricing, application of OECD principles;
• Leases and changes to accounting standards; and
• Life insurance apportionment rules.

A short technical note on the taxation of foreign branches will be published separately, providing additional information not within the scope of the explanatory note, including detail on the relation between the draft legislation and the OECD Model Tax Convention.