Overview

This Finance Bill makes numerous changes to UK tax laws, affecting income tax, corporation tax, capital gains tax, excise duties, and other taxes. It also includes provisions for follower notices and accelerated payments, and regulates promoters of tax avoidance schemes.

Description

Tax Changes

The bill alters tax rates for income tax (introducing a 0% starting rate for savings), corporation tax, and capital gains tax for 2014-15 and beyond. Specific changes are made to various tax allowances and reliefs, including those for married couples and civil partners. Significant amendments are introduced regarding the remittance basis for non-domiciled individuals. The bill also modifies rules for capital allowances, pensions, employee share schemes, investment reliefs, and transfer pricing. Excise duties on alcohol, tobacco, air passenger travel, and vehicle excise duty are adjusted. The aggregates levy is amended by removing some exemptions. Changes are also introduced to stamp duty land tax, inheritance tax, and the bank levy. Finally, new duties are introduced: a general betting duty, pool betting duty, and remote gaming duty.

Follower Notices and Accelerated Payments

The bill introduces follower notices for taxpayers who do not comply with judicial rulings on tax matters, along with penalties for non-compliance. It also establishes a system of accelerated payments for tax, and restrictions on tax payment postponement during appeals.

Promoters of Tax Avoidance Schemes

New regulations are put in place to target promoters of tax avoidance schemes. These regulations include the issuing of conduct notices and monitoring notices, information gathering powers, penalties for non-compliance and offences for concealing documents.

Government Spending

The bill's impact on government spending is complex and depends on its effect on tax revenue. While some changes (like increased tax rates) will likely increase revenue, others (like new tax reliefs) may decrease it. No precise figures on the overall effect are provided in the bill text.

Groups Affected

• Individuals: Changes to income tax rates, allowances, reliefs, and capital gains tax will directly affect individuals' tax liabilities.
• Businesses: Corporation tax, capital allowances, and excise duty changes will impact businesses' tax burdens.
• Married couples and civil partners: New tax relief provisions for married couples and civil partners.
• Non-domiciled individuals: Changes to the remittance basis.
• Pensioners: Changes affecting pension flexibility and tax treatment of pensions.
• Employees: Adjustments to employee share schemes and related tax rules.
• Investors: Modifications to venture capital trusts and social investment reliefs.
• Banks: Changes to the bank levy and the Code of Practice on Taxation for Banks.
• Gambling industry: Introduction of new general betting duty, pool betting duty, and remote gaming duty.
• Promoters of tax avoidance schemes: Significant new regulations targeting tax avoidance scheme promoters will affect their operations and may lead to penalties.
• Scottish taxpayers: The bill grants powers to set Scottish income tax rates, leading to potential changes to the taxation of Scottish residents.

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