Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/14/2012

United Kingdom - Tax measures in 2013 Finance Bill 

December 14:  Draft clauses for the 2013 Finance Bill were published on Tuesday, 11 December 2012, and include the following measures.

Capital allowances

  • Temporary increase in annual investment allowance to £250,000 for two years
  • First-year tax credits for enhanced capital allowances— extended to 31 March 2018 (from 31 March 2013)
  • 100% first-year allowance for gas re-fuelling equipment— extended to 31 March 2015 (from 31 March 2013)
  • Capital allowances for business cars

Individual tax provisions

  • Extension of capital gains tax “entrepreneurs’ relief” to shares acquired through the exercise of “enterprise management incentive” share options when an individual holds less than 5% of the ordinary share capital
  • Extension of relief for “exempt property” (e.g., works of art for public access and jewelry for personal use, etc.) when it is lost, stolen or destroyed
  • Allowance of trustees to switch UK assets held in trusts made by non-UK domiciled individuals to investments in open-ended investment companies and authorised unit trusts without triggering a charge to inheritance tax (effective retroactively)
  • Confirmation that payments made under a UK-Swiss agreement are not taxable remittances for UK-resident, non-domiciled taxpayers

VAT

The value added tax (VAT) measures included in the draft Finance Bill were largely anticipated; an overview of the proposed changes is available in KPMG’s Indirect Tax Update 47/12 [PDF 202 KB].


Read a December 2012 report [PDF 153 KB] prepared by the KPMG member firm in the UK: Weekly Tax Matters (14 December 2012)


Also covered in the KPMG report are the following items:


  • Budget 2013 will take place on Wednesday, 20 March 2013
  • UK and Isle of Man to sign an enhanced Tax Information Exchange Agreement
  • European financial transaction tax update
  • Controlled foreign companies - regulations
  • First-year allowances and leasing
  • VAT exemption of insurance “mis-selling reviews” and helpline services
  • Insurance companies - streaming rules



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