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  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 5/29/2012

United Kingdom - Update on Finance Bill 

May 29: Following a break caused by the change in Parliamentary sessions, the Committee stages of the Finance Bill resumed May 22 and May 24. There will now be a further two week break because Parliament rises for recess around the Jubilee celebrations.

In light of these breaks, it appears the Bill may become law by October 26, when the Budget resolutions expire; however, it is possible that, as in previous years, the Bill will receive Royal Assent before the Parliamentary summer recess, which starts in mid-July. The Committee is working to a deadline (June 26) which would make this possible (if tight). This is the first year, though, that the Finance Bill timetable has been affected by the change in Session. Nothing is certain yet.


Government amendments to the Bill include:


  • Clause 46 (plant and machinery leased under a long funding lease). The amendments, broadly, significantly reduce the unintended retroactive consequences of the provisions.
  • Schedule 8 (Venture Capital Trusts). The amendments (again broadly) alter the date at which the new conditions take effect.
  • Schedule 13 (Employer asset-backed pension contributions). The amendments are mainly to remove some minor unintended consequences that arose from the original drafting.

To read a May 2012 report about the Finance Bill, about recent VAT decisions, and other topics, prepared by the KPMG member firm in the UK: Weekly Tax Matters (May 25) (PDF 172 KB)



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