Legislation Day 2023: R&D, Pensions, and Surprises
On 18th July, Legislation Day brought some expected and unexpected announcements for potential inclusion in the next Finance Bill. Draft legislation is open for consultation until 12th September 2023.
R&D Tax Relief:
The government considered merging SME R&D tax relief with R&D expenditure credits. While draft legislation is published, the final decision will be made later. Additional tax relief for R&D-intensive SMEs from April 2023 will continue alongside any merged scheme.
Creative Industry and Cultural Tax Reliefs:
Draft legislation covers changes to audio-visual tax reliefs from January 2024, administrative changes to creative industry tax reliefs from April 2024, and clarification of cultural tax relief rules from April 2024.
Pensions:
Draft legislation abolishes the pensions lifetime allowance charge from 6th April 2023 and supports modernization of tax relief for pensions.
High Income Child Benefit Charge (HICBC) Administrative Changes:
The government seeks to simplify the process for taxpayers liable to the HICBC, addressing issues but falls short of a policy review.
Tackling Avoidance and Evasion:
Draft legislation introduces a new criminal offence for promoters of tax avoidance schemes not complying with HMRC legal notices. It allows HMRC to apply for a disqualification order against directors of companies promoting tax avoidance. Maximum sentences for egregious tax fraud will double to 14 years.
New Consultations:
New consultations include taxation of employee ownership trusts and employee benefit trusts, updating VAT Terminal Markets Order legislation, Plastic Packaging Tax - mass balance approach, and Energy Profits Levy and the Energy Security Investment Mechanism.
Contact us for more information.
London: 020 7060 1811