Draft legislation, to be included in the Finance Bill 2021-22, published
20 July 2021
Various draft legislation has been published today, for inclusion in the Finance Bill 2021-22.
Clamping down on promoters of tax avoidance – Initially announced in November 2020, a new package of measures is being implemented to clamp down on any promoters of tax avoidance. Some of the key proposals include allowing HMRC to freeze the assets of promoters to ensure the penalties they are liable for are paid and assisting taxpayers in spotting and exiting avoidance schemes. There will also be a focus on tackling offshore promoters and any entities here in the UK that support them. Read the draft legislation here.
Increasing Normal Minimum Pension Age (NMPA) – This draft legislation will raise the NMPA from the current 55, to 57 in April 2028. This means that the age at which those individuals who are members of a registered pension scheme can draw their benefits without being charged will increase. Those who are members of uniformed public service pension schemes and anyone with unqualified rights to access their pension below the age of 57 will not be subject to these unauthorised payment charges. Where individuals transfer their pension age, they will be able to retain their protected pension age. Read the draft legislation here.
Notification of an uncertain tax treatment by large businesses – This draft legislation makes it mandatory for large businesses to advise HMRC in scenarios where they have adopted an uncertain tax treatment. This will be applied to returns that are due to be filed on or after 1 April 2022, and the notification process will give HMRC correct information in a timely fashion which should help in the resolution of uncertain tax treatments. Read the draft legislation here.
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