A number of significant improvements have been made to the draft provisions published by HMRC on 6 December 2011, which are most welcome. There remain, however, significant areas where the legislation appears flawed or the meaning is unclear. We consider a number of these areas in our client alert, including:
- Transfers of business
- Capital gains, boxes and pools and allocation to BLAGAB
- Long term business fixed capital
The approach of HMRC to areas whether the legislation is unclear, or does not work as intended, is rectification via the use of secondary legislation or for companies to agree specific (perhaps non statutory) treatments with their Customer Relationship Manager (CRM). Companies should now have a clear idea of how the new regime impacts them and on which areas they need to seek agreement from their CRM.