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Budget 23 March 2011 - updates

The Chancellor of the Exchequer presented his Budget to Parliament at 12.30 on Wednesday 23 March 2011.

All of the published Budget Day documents and supporting information is now available on the Budget - 23 March 2011 page which can also be accessed from the left hand menu link. Over the following weeks and months, updates and further information on Budget proposals, including consultations, will be announced and they will all be available on this updates page.

Additional publications will also be available from the HM Treasury website (Opens new window). HM Treasury has also published an updated tracker on 19 April 2011 for all current and planned tax consultations (Opens new window) which commenced after June 2010.

On this page:

  • 13 March 2012 - Property losses - Anti-avoidance
  • 22 February 2012 - Employer asset-backed pension contributions
  • 12 January 2012 - Post-cessation trade relief: anti-avoidance
  • 20 December 2011 - Commutation of small personal pension funds; Overseas transfers of pension savings - QROPS
  • 6 December 2011 - Autumn Tax Updates and Draft Finance Bill 2012 clauses
  • 29 November 2011 - Chancellor's Autumn Statement
  • 11 November 2011 - PAYE for Employers: Disguised Remuneration - National Insurance regulations
  • 15 September 2011 - Manufactured overseas dividends: anti-avoidance
  • 7 September 2011 - Collective investment schemes: enabling measures
  • 25 August 2011 - Disguised Remuneration Legislation
  • 18 August 2011 - Disguised Remuneration: draft guidance
  • 12 August 2011 - Capital Allowances loophole ended
  • 8 August 2011 - Digital by Default; VAT: consultation on the next steps for moving VAT online
  • 1 August 2011 - Tax Treaties Anti-avoidance
  • 20 July 2011 - The Finance Act 2011; Bank Levy: quantification notices
  • 14 July 2011 - Working with Tax Agents: Responses to Consultation
  • 11 July 2011 - Integrating the operation of income tax and National Insurance contributions: a call for evidence
  • 6 July 2011 - Tax-advantaged venture capital schemes: a consultation
  • 5 July 2011 - Disguised Remuneration
  • 1 July 2011 - Bank Levy
  • 30 June 2011 - Consultation on the Reform of the Controlled Foreign Company rules
  • 30 June 2011 - High-risk areas of the tax code: Relief for income tax losses
  • 30 June 2011 - High-risk areas of the tax code: The taxation of unauthorised unit trusts
  • 29 June 2011 - Gifts of pre-eminent objects and works of art to the nation
  • 28 June 2011 - Consultation on the Reform of the Controlled Foreign Company rules
  • 28 June 2011 - VAT: Cost Sharing Exemption
  • 17 June 2011 - The Simplification of Regulatory Penalties Reform of the taxation of non-domiciled individuals Statutory residence test
  • 14 June 2011 - Potential Debt Cap Changes for Finance Bill 2012
  • 10 June 2011 - Research & Development Tax Credits Patent Box - A new incentive for charitable legacies
  • 31 May 2011 - Capital allowances for fixtures; Tackling VAT evasion on road vehicles brought into the UK; Capital allowances: feed-in tariffs & the renewable heat incentive; Capital allowances anti-avoidance rules for plant and machinery
  • 27 May 2011 - Removal of 36 tax reliefs
  • 24 May 2011 - Employer Asset-backed Pension Contributions; Foreign Pensions of UK Residents and Anti avoidance; Incapacitated person - a modern definition
  • 10 May 2011 - Extra statutory concession – group supplies using an overseas member ; UK Oil and gas fiscal regime - valuation of non arms length sales of gas
  • 11 April 2011 - Tax consultation framework and consultation tracker
  • 7 April 2011 - Simplification review: capital gains rules for groups of companies: updated draft guidance
  • 6 April 2011 - Overseas Pensions received by UK Residents
  • 5 April 2011 - Life Insurance Companies: A New Corporate Tax Regime
  • 4 April 2011 - Corporate Capital Gains Degrouping Charges - Simplification Loan relationships and derivative contracts Fuel Duty
  • 31 March 2011 - Finance Bill 2011 published; Junior ISAs ; Pensions - Further guidance ; Annuitise at 75 ; Overseas pensions; Corporation Tax - Associated company rules; Data Gathering powers and Security for PAYE and NICs; Bank Levy; Fuel Duty; Disguised remuneration

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13 March 2012

Property losses - Anti-avoidance

The Government has announced that it will introduce new legislation, effective from 13 March 2012, to counter tax avoidance that relies on property business loss relief or post-cessation property relief.

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22 February 2012

Employer asset-backed pension contributions

The Government has announced that it will introduce further legislation under Finance 2012, effective from 22 February 2012, in connection with employer asset-backed pension contributions.

See the links below for further information.

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12 January 2012

Post-cessation trade relief: anti-avoidance

The Government has announced that it will introduce new legislation, effective from 12 January 2012, to counter tax avoidance that relies on post-cessation trade relief. See the links below for further information.

See the Written Ministerial Statement (Opens new window)

Your comments are invited by 12 March 2012 on whether the draft legislation would achieve its objective and change the law as intended. Please either email Mark Anderson or Hugh Dorey or write to them at HM Revenue & Customs, 100 Parliament Street, London SW1A 2BQ

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20 December 2011

Commutation of small personal pension funds

Following the publication on 6 December 2011 of draft secondary legislation to enable individuals to access savings held in small personal pension schemes, that is, £2,000 or less, by way of lump sum payment (commutation), draft guidance has been published today. Any comments on the draft guidance should be sent to: pensions.policy@hmrc.gsi.gov.uk by 10 February 2012.

Overseas transfers of pension savings - QROPS

Following the publication on 6 December 2011 of draft secondary legislation to make changes to the system for transfers of pension savings to qualifying recognised overseas pension schemes (QROPS), draft guidance has been published today. Any comments on the draft guidance should be sent to: pensions.policy@hmrc.gsi.gov.uk by 10 February 2012.

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6 December 2011

The Government has today published draft Finance Bill 2012 clauses and other tax updates.

A full list of all of the documents published by both HM Revenue and Customs and HM Treasury are available from the following links:

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29 November 2011

Chancellor's Autumn Statement

The Chancellor has delivered his Autumn Statement to Parliament.

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11 November 2011

PAYE for Employers: Disguised Remuneration - National Insurance regulations

Regulations have been introduced to charge Class 1 National Insurance contributions on amounts chargeable to tax under the recently introduced Disguised Remuneration measure.

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15 September 2011

Manufactured overseas dividends: anti-avoidance

The Government has today announced that it will introduce legislation in the 2012 Finance Bill, to take effect from 15 September 2011 to clarify the treatment of manufactured overseas dividends received by companies. A consultation on wider changes to the manufactured overseas dividends tax rules will be launched after Budget 2012. See the links below for further information:

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7 September 2011

Collective investment schemes: enabling measures

Secondary legislation to enable master funds to meet diversity of ownership conditions has now been made. The change to this condition for offshore funds was made at the same time as a more general update to the tax regulations for offshore funds. See the links below for further information:

These changes will assist in enabling funds to take advantage of new freedoms in the European Union directive relating to Undertakings for Collective Investment in Transferable Securities (UCITS).

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25 August 2011

Disguised Remuneration Legislation

Draft NICs (National Insurance contributions) Regulations and Explanatory Memorandum relating to the legislation have been published today.

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18 August 2011

Disguised Remuneration: draft guidance

A draft version of the new guidance material that will be included in the Employment Income Manual this autumn has been published.

The latest version of the Question and Answer document was published on 5 July 2011 and can be found from the link below under that date.

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12 August 2011

Capital Allowances loophole ended

The Government has today announced that it will introduce legislation in the 2012 Finance Bill, to take effect from the beginning of 12 August 2011, to prevent tax avoidance through the acceleration of claims to first-year allowances.

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8 August 2011

Digital by default

This consultation considers the next steps in making HMRC's proposed Registration Wizard the digital by default channel to get set up for the main direct business taxes (Corporation Tax, Income Tax Self Assessment/Class 2 NICs, PAYE). It is part of the 'One Click' programme of work in HMRC to accelerate the move to delivery of services through online channels. There is also an opportunity to comment on a number of other areas. XBRL tagging and small repayments are discussed on Corporation Tax and how we can improve our service on ceasing businesses for Income Tax and PAYE. The consultation also asks for views on providing email addresses as part of a business’s designatory data.The consultation runs until 31 October 2011.

VAT: consultation on the next steps for moving VAT online

This consultation covers changes to the operation of VAT to move further transactions online, and the assistance into digital that will support those moves. HMRC proposes that from 1 April 2012, for VAT registered businesses with a turnover below £100,000, it will be compulsory to file VAT returns online and make electronic payment of any VAT due. In support of the digital by default agenda, online will also become the default channel for all businesses for VAT registration, deregistration and changes to registered details but these will not be mandated at this stage. Assistance into digital for those who need it is an integral part of the Government’s digital agenda. This consultation therefore seeks views on where digital assistance may be required, and what forms that assistance should take. The consultation runs until 31 October 2011.

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1 August 2011 - Tax Treaties Anti-avoidance

Consultation withdrawn.

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20 July 2011

Bank Levy: quantification notices

Regulations for the collection and management of the Bank Levy have been made and will come into force on 11 August 2011.

The Finance Act 2011

The Finance Bill 2011 has now received Royal Assent and became Finance Act 2011 on 19 July. You will be able to open the document from here once it has been published on the Parliament website.

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14 July 2011

Working with Tax Agents: Responses to Consultation

This document responds to the consultation document published on 9 December 2009 and the draft legislation published on 8 February 2010. A discussion document seeking comments on revised draft legislation is also published today.

Working with Tax Agents: Dishonest Conduct

This discussion document seeks comments on revised draft legislation to enable HMRC to tackle tax agents who act dishonestly in tax matters. The proposals include the issue of dishonest conduct notices, access to working papers with Tribunal approval, a civil penalty and allowing HMRC to publish details of dishonest tax agents who are penalised but have not made full disclosure. The consultation is open until 16 September 2011.

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11 July 2011

Integrating the operation of income tax and National Insurance contributions: a call for evidence

The Government has issued a call for evidence, published on the HM Treasury website, as part of its consideration of the integration of the operation of the income tax and National Insurance contributions systems, announced at Budget 2011. This is a preliminary stage of consultation, and aims to build a strong evidence base on the burdens to employers of having to operate two different systems. Responses to this call for evidence will inform the Government’s proposals for reform, on which it will consult in the autumn. The consultation is open for comment until 19 September 2011.

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6 July 2011

Tax-advantaged venture capital schemes: a consultation

Consultation, published on the HM treasury website (Opens new window), on further support for seed investment and start-ups, simplification of the EIS/VCT schemes and ensuring they are targeted on genuine risk capital investments. The aim of this consultation is to gather views and evidence from stakeholders on a new scheme for seed investment and on a number of reform options to improve the effectiveness of the Enterprise Investment Scheme and Venture Capital Trusts. The consultation runs until 28 September 2011.

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5 July 2011

Disguised Remuneration

A revised question and answer document to replace the one issued on 31 March 2011 has been published.

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1 July 2011

Bank Levy

HMRC has issued, for informal consultation, draft regulations which set out the provisions for relief of double taxation for groups and entities that fall within the charge to the Bank Levy and the French bank levy, and where France is the home state of the entity or group. HMRC would welcome comments on these regulations on or before 15 July 2011.

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30 June 2011

Consultation on the Reform of the Controlled Foreign Company rules

Following interim improvements to the current rules in 2011, new Controlled Foreign Company (CFC) rules will be introduced in 2012. This document includes proposals for how the new CFC regime would operate, reflecting outcomes from extensive consultation with business and interested parties, including several working groups that have been held over recent months. Following the next stage of consultation, draft legislation will be published in autumn 2011 and the new CFC rules will be legislated in Finance Bill 2012. The consultation runs until 15 August 2011.

High-risk areas of the tax code: Relief for income tax losses

This consultation covers reliefs for losses incurred in a trade, profession or vocation, a property business or in employment that are relievable against general income or capital gains either of the same tax year or another tax year. The aim is to explore ways of ensuring that genuine business losses and employment losses are relieved while effectively deterring taxpayers from entering into tax avoidance arrangements intended to exploit these loss reliefs. We are open to views on the current form of the reliefs and how they could be improved or simplified in a way that provides certainty but minimises tax avoidance opportunities. We also wish to gain a better understanding of the impacts if changes were made to the current rules. The consultation runs until 30 September 2011.

High-risk areas of the tax code: The taxation of unauthorised unit trusts

This consultation concerns the tax rules for unauthorised unit trusts and their investors. The aim is to explore ways of simplifying a complex part of the tax code to reduce administrative burdens and at the same time remove avoidance opportunities. The consultation runs until 30 September 2011.

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29 June 2011

Gifts of pre-eminent objects and works of art to the nation

Consultation, published on the HM Treasury website, seeking views on providing an incentive for owners of pre-eminent objects, to encourage them to donate objects to the nation during their lifetime by providing a tax reduction based on a set percentage of the value of the object. This consultation is to inform aspects of the policy detail that have not yet been decided and to consider how to implement the policy. The consultation is open for comment until 21 September 2011.

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28 June 2011

Consultation on the Reform of the Controlled Foreign Company rules

Following interim improvements to the current rules in 2011, new Controlled Foreign Company (CFC) rules will be introduced in 2012. This consultation document includes proposals for how the new CFC regime would operate, reflecting outcomes from extensive consultation with business and interested parties, including several working groups that have been held over recent months. Following the next stage of consultation, draft legislation will be published in autumn 2011 and the new CFC rules will be legislated in Finance Bill 2012. The consultation runs until 15 August 2011.

VAT: Cost Sharing Exemption

This consultation invites comments on a possible model for a cost sharing exemption that might be introduced in the UK. It also asks specific questions to enable HM Revenue & Customs to assess the impacts of implementing the exemption. The consultation runs until 30 September 2011.

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17 June

The Simplification of Regulatory Penalties

HM Revenue & Customs (HMRC) has published the first consultation (of two) on the final stage of the Review of Powers’ reforms of penalties in the tax system. It covers all penalties that have not previously been considered by the Review of Powers including penalties relating to all the taxes and duties administered by HMRC, along with a small number of non-tax penalties but excluding certain specific penalties. This consultation considers and seeks views on the design principles and design features of a new penalty framework and is open for comment until 9 September.

Reform of the taxation of non-domiciled individuals

This consultation document, published on the HM Treasury website, seeks views on the detailed policy design of the changes announced at Budget 2011 to the taxation of non-domiciled individuals. The Government welcomes views from individuals, business advisors, businesses and representative bodies who are affected by, or have an interest in, the rules on non-domicile taxation. The consultation runs until 9 September 2011.

Statutory residence test

This consultation document, published on the HM Treasury website, proposes the introduction of a statutory definition of tax residence for individuals and seeks views on the design and implementation of the framework for such a definition. As part of this consultation, the Government is also seeking views on options to reform the concept of ordinary residence. The consultation runs until 9 September 2011.

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14 June 2011

Potential Debt Cap Changes for Finance Bill 2012

A Technical Note has been published as informal consultation to explore issues that may be suitable for inclusion in the 2012 Finance Bill. It is the first stage of the consultation and sets out the objectives and for some issues identifies options.

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10 June 2011

Research & Development Tax Credits

The Government response to the comments and proposals put forward by individuals, companies, representative bodies, professional bodies and others to the Research and Development ('R&D') Tax Credits consultation published in November 2010. In addition to providing its response, the Government also seeks further views on specific policy proposals

Patent Box

Consultation, published on the HM Treasury website, on the introduction of a preferential regime for profits arising from patents, known as a Patent Box. This will allow companies to apply a ten per cent Corporation Tax rate to profits attributed to patents.

A new incentive for charitable legacies

Consultation on the policy detail and implementation of a lower rate of Inheritance Tax where people leave a charitable legacy of ten per cent or more of their estate when they die. The consultation runs until 31 August 2011

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31 May 2011

High Risk Tax Avoidance Schemes

Consultation on proposals intended to remove the cash flow benefits from those who use listed high risk tax avoidance schemes. The consultation seeks comments on the details of the proposal and more generally on the concept and any unintended consequences. The consultation runs until 31 August 2011.

Capital allowances for fixtures

Consultation on detailed proposals for introducing a requirement that businesses must pool their expenditure on fixtures in a building, within a short period of acquisition, in order to qualify for allowances (the 'mandatory pooling' proposal), together with a proposed, related administrative requirement. The consultation also welcomes views on other ways in which the wider fixtures regime should be improved. The consultation runs until 31 August 2011.

Tackling VAT evasion on road vehicles brought into the UK

Consultation on the implementation of a new online notification (and in some cases, payment) system to be introduced in 2013 for vehicles brought into the UK for permanent use on UK roads. The consultation runs until 31 August 2011.

Capital allowances: feed-in tariffs & the renewable heat incentive

Consultation on proposed legislation to clarify the appropriate capital allowances treatment of expenditure on plant or machinery that could qualify for payments under either the Feed-in Tariff (FITs) regime or the Renewable Heat Incentive (RHI). The consultation runs until 31 August 2011.

Capital allowances anti-avoidance rules for plant and machinery

Consultation on proposed amendments to the generic anti-avoidance legislation in the part of the capital allowances code that applies to plant and machinery to make the rules more effective in preventing tax avoidance. The consultation runs until 31 August 2011.

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27 May 2011

Removal of 36 tax reliefs

This consultation, published on the HM Treasury website, is seeking evidence on the impacts of removing a further 36 tax reliefs. This follows the independent Office of Tax Simplification's March 2011 report reviewing the number and complexity of tax reliefs in the UK tax system.

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24 May 2011

Employer Asset-backed Pension Contributions

Employer Asset-backed Pension Contributions. This consultation seeks views on changing the tax rules around employer asset-backed contributions to defined benefit registered pension schemes. The consultation runs from 24 May until 16 August 2011.

Foreign Pensions of UK Residents and Anti avoidance

Draft anti-avoidance legislation to provide that certain foreign pensions paid to UK residents may be taxed in the United Kingdom, as announced on 6 April, has been published today. Your comments are invited by 1 June on whether the draft legislation would achieve its objective and change the law as intended. Please either email Andrew Dawson or Beverley Davies, or write to them at HMRC 100 Parliament Street, London SW1A 2BQ.

Incapacitated person - a modern definition

This consultation seeks views on how best to modernise the definition of 'incapacitated person' for direct taxes and is asking for comments from interested parties on the best alternative approach. The consultation runs from 24 May until 16 August 2011.

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10 May 2011

Extra statutory concession - group supplies using an overseas member

Legislating an extra-statutory concession - ESC3.2.2
This technical note seeks views on the best legislative approach to giving effect to the concession. The consultation runs from 10 May until 3 August 2011.

UK Oil and gas fiscal regime - valuation of non arms length sales of gas

UK Oil and Gas Fiscal Regime - Valuation of non arm's length sales of Gas HM Revenue and Customs (HMRC) has issued a discussion document seeks views on possible changes to the tax rules within the UK Oil and Gas Fiscal Regime on valuing non arm's length (NAL) sales of gas. The consultation runs from 10 May until 2 August 2011.

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11 April 2011

Tax consultation framework and consultation tracker

The Government has published the responses to its consultation document about the Tax consultation framework, and HM Treasury has published an updated version of its consultation tracker which provides information on planned tax consultations during 2011.

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7 April 2011

Simplification review: capital gains rules for groups of companies: updated draft guidance

This document provides updated draft guidance to accompany the Finance Bill legislation published on 31 March 2011 and the related Written Ministerial Statement, Technical Note and draft legislative changes published on 4 April (see below).

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6 April 2011

Overseas Pensions received by UK Residents

The Government is taking steps to prevent tax avoidance by UK residents in respect of certain pensions receivable from overseas. In the absence of action today, UK residents would have been able to avoid UK tax by transferring pension savings to certain overseas countries.

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5 April 2011

Life Insurance Companies: A New Corporate Tax Regime

HM Revenue and Customs (HMRC) has issued a consultation document on implementation of a new corporate tax regime for life insurance companies to have effect from 1 January 2013. The consultation runs from 5 April until 28 June 2011.

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4 April 2011

Corporate Capital Gains Degrouping Charges - Simplification

The Government has announced it's intention to introduce a Government Amendment to Schedule 10 to the Finance (Number 3) Bill, published 31 March. The Schedule simplifies the calculation of chargeable gains degrouping charges for companies, and the proposed amendment allows groups to elect for the Schedule to apply from 1 April 2011, rather than from the date of Royal Assent.

Loan relationships and derivative contracts

Draft guidance on changes to the Corporation Tax rules that apply where amounts are not fully recognised for accounting purposes and changes to the Corporation Tax rules on loan relationships and derivative contracts that apply to group mismatches.

Fuel Duty

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31 March 2011

Finance Bill 2011 published

Finance Bill 2011 (PDF 2.5MB) and the Explanatory Notes (Opens new window) have been published today on the Parliament site. They can be accessed in pdf format from these links.

More information about the individual clauses can be found in the Overview of Tax Legislation and Rates (OOTLAR) and our Budget pages for 22 June, 22 June Updates and 23 March, all of which can be accessed from the left hand menu bar.

Other Budget measure documents published

Alongside Finance Bill 2011 - which is actually called Finance (Number 3) Bill because it is the thirrd Bill published in this Parliamentary session - the following documents have been published.

Junior ISAs

Draft secondary legislation concerning Junior ISA, the new tax-advantaged saving account for children, has been published for consultation.

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Pensions

This document provides draft guidance on the Finance Bill 2011 changes to the pensions benefits rules under registered pension schemes.

This document contains draft secondary legislation for registered pension schemes on changes to the income drawdown rules with effect from 6 April 2011. Comments on this draft legislation should be sent by 13 May 2011

ESC A10 (lump sums paid by overseas pension schemes) is being partially withdrawn and ESC A11 (residence in the UK) will not apply to income withdrawals from flexible drawdown pensions.

Corporation Tax - Associated company rules

The Finance Bill published today includes draft amendments to the rules governing which companies are associated for the purposes of access to the small companies' rate of Corporation Tax and Marginal Small Companies Relief. This supplementary document contains the draft secondary legislation and HMRC guidance that accompany that Finance Bill clause.

Data Gathering powers and Security for PAYE and NICs

Two consultation documents on Data-gathering' and 'Security for PAYE/NICs' were published alongside the draft Finance Bill legislation on 9 December 2010. The consultation on the Finance Bill provisions closed on 9 February, with the deadline for comments on the supporting regulations on 9 March 2011. This document is a summary of responses to both consultation documents.

Bank Levy

Fuel Duty

The Tax Information and Impact Note (TIIN) for Fuel duty published alongside Budget on 23 March 2011 has been updated and republished alongside Finance Bill on 31 March. The updates are to the impacts on businesses and Individuals and households.

Disguised Remuneration

A revised Question and Answer document to replace the one issued in February has been published today.

Update: this has now been superseded by a revised version published on 5 July 2011.

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