Finance Act Handbook

Tolley’s Finance Act Handbook 2021 will be out very shortly. The detailed commentary includes contributions from me on measures relating to employment income, coronavirus support schemes, income tax exemptions, and tax reliefs for designated freeport tax sites.

The length of the annual finance act – this one has more than 400 pages – reflects the number and frequency of changes to tax legislation and, up to a point, the complexity faced by people and businesses seeking to comply with the law.

But not all tax changes are found in finance acts. My commentary this time included cross-references to the National Insurance Contributions Bill and the Subsidy Control Bill now before Parliament, and new taxes are being introduced. The Health and Social Care Levy Bill has been rushed through its House of Commons stages, and the Treasury has just published draft legislation for a Residential Property Developer Tax.

The road is long for pillars one and two

G7 finance ministers meeting in London reached a “seismic agreement” on global tax reform that will mean “the largest multinational tech giants will pay their fair share of tax in the countries in which they operate”, the UK’s G7 presidency announced on 5 June.

My article for Tax Journal (paywall) published on June 10 is here, with comments from Dan Neidle, Judith Freedman and Tim Sarson on the road ahead.

HM Treasury rejects call for tax strategy consultation

The UK government rejected the House of Commons Treasury Committee’s call for consultation on a draft tax strategy and has been asked for “a clearer explanation” of its response, committee Chair Mel Stride said.

The committee appreciates “the difficulty in pre-announcing tax policy” but it is disappointing that “the government has rejected our recommendations to improve the approach to tax strategy, when the evidence was overwhelmingly in favour”, he said.

My news story for Tax Notes (paywall) published on June 4 is reproduced here, with permission.