Overview

This Finance Bill introduces various changes to UK tax laws, affecting income tax, corporation tax, capital gains tax, excise duties, VAT, stamp duty, inheritance tax, and other taxes. It also includes provisions for follower notices and accelerated payments to address tax avoidance, and establishes new duties on betting and remote gaming.

Description

The bill is extensive, covering numerous areas of taxation. Key changes include adjustments to income tax rates and allowances for 2014-15 and beyond (including a new transferable tax allowance for married couples and civil partners), modifications to corporation tax rates, particularly for ring-fenced profits, and alterations to capital gains tax allowances. Excise duties on alcohol and tobacco are also adjusted, as are air passenger duty and vehicle excise duty rates. Further, the bill introduces new duties on general betting, pool betting, and remote gaming, alongside changes to VAT rules, stamp duty land tax, and the bank levy. Significantly, the bill introduces follower notices and accelerated payments to combat tax avoidance schemes, empowering HMRC to issue notices and penalties for non-compliance. It also introduces provisions regarding promoters of tax avoidance schemes, including conduct and monitoring notices. Finally, the Bill includes provisions relating to pensions (flexibility measures and allowances), employee share schemes, and international tax matters.

Government Spending

The impact on government spending is complex and multifaceted, depending on the success of the bill in achieving its objectives. Revenue increases from new duties and tax rate changes are projected but the overall fiscal impact is difficult to quantify without further analysis, which would be provided in the Bill's impact assessment.

Groups Affected

• Individuals: Changes to income tax rates, allowances, and the introduction of a transferable allowance for married couples will affect individuals' tax liabilities. Pensioners will see changes to pension flexibility rules.
• Businesses: Corporation tax rate adjustments and capital allowances will impact businesses. The film, television, and video games industries will also be affected by specific relief changes. Changes to the treatment of partnerships and the introduction of new duties on betting and remote gaming will affect businesses in those sectors.
• Banks: The bank levy will continue to impact banks, with rate changes incorporated in this bill. A code of conduct in relation to tax will impact banks.
• Social enterprises: New tax relief for investments in social enterprises will impact this sector.
• Taxpayers engaging in tax avoidance: The introduction of follower notices and accelerated payment notices, along with measures targeting promoters of avoidance schemes, will directly affect those engaging in tax avoidance strategies.
• Oil and gas sector: Specific provisions relating to oil and gas activities will impact this industry.
• Vehicle owners: Changes to vehicle excise duty will impact vehicle owners.
• Scottish taxpayers: The introduction of Scottish basic, higher, and additional rates of income tax affects income tax in Scotland.

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