9 Tax consultation documents published
The Government has published nine documents for discussion and consultation relating to tax, following commitments made at the June budget.
The Treasury announced on 27 July that the consultations, summarised below, are part of the coalition Government’s commitment to being "more open and transparent" in its approach to policy making.
PAYE reform – The Government seeks views on the collection of real time information to simplify taxation and reduce burdens on business. It also invites views on an option for longer-term reform to improve accuracy and further reduce administrative burdens, or alternative proposals to the same end.
Furnished holiday lettings – The Government seeks views on a proposal to ensure that the tax rules for furnished holiday lettings meet EU legal requirements in a fiscally responsible way, by changing the eligibility thresholds and restricting the use of loss relief.
Pensions tax relief – Following the Budget announcement, the Government seeks views on a range of policy issues that would need to be decided in any new regime.
Associated company rules – The Government has published a summary of responses to the recent consultation on simplifying the associated company rules as they apply to the small profits rate of corporation tax. As announced in the June Budget, the changes will take effect from April 1, 2011.
Inheritance tax avoidance schemes – The Government seeks views on legislation designed to bring inheritance tax, as it applies to the transfer of property into trust, into the disclosure regime, with the objective of addressing the problem of identifying such schemes and users at an early stage.
Taxation of foreign branches – The Government seeks views on the scope of an exemption for foreign branch profits, aimed at delivering a more territorial approach to corporation tax to enhance the UK’s competitiveness.
Controlled Foreign Companies interim improvements – The Government has published a short note setting out the aim and scope of CFC interim improvements, together with the framework for consultation over the summer.
Modernisation of Investment Trust Company rules – The Government seeks responses to a consultation document that sets out proposals for modernising tax rules for Investment Trust Companies, together with consequential amendments to the Companies Act by the Department for Business Innovation and Skills.
National Minimum Wage: travel and subsistence schemes – The Government has published a summary of responses to the recent consultation on travel and subsistence schemes implemented for some temporary workers paid at or near the National Minimum Wage (NMW). The Government has concluded that, on balance, action should be taken. It will amend the NMW Regulations to take effect from January 1, 2011.