19 July 2023
Tuesday 18 July, also known as legislation day (L-Day), included draft legislation for potential Finance Bill 2023-24 measures along with supporting policy documents, explanatory notes, tax information and impact notes.
Draft legislation published largely follows on from policies announced at Spring Budget 2023 and Tax and Administration Maintenance Day (TAMD). The government is also making announcements in a small number of technical tax policy areas and publishing a number of consultations and summaries of responses.
Some of the measures from the announcement include:
- research and development (R&D) reliefs – draft legislation to introduce a new permanent rate of relief for the most R&D intensive loss-making small to medium sized enterprises (SMEs) from 1 April 2023, as well as on the proposed design of a potential merged scheme combining the SME and R&D expenditure credit (RDEC) schemes
- reform of audio-visual creative tax reliefs – draft legislation to implement the previously announced modernisation and reform of the existing audio-visual tax reliefs into expenditure credits. The reforms include a higher rate of relief for animation and children’s TV, which will also be extended to animated films
- administrative changes to the High Income Child Benefit Charge (HICBC) – the government wants to simplify the process for customers who become liable to the HICBC, particularly for those who currently need to register for self-assessment to pay the charge. The government will provide details in due course on how it will enable employed customers to pay through their tax code, without the need to register for self-assessment
In addition, the following policy papers have been published:
- Abolishing the pensions lifetime allowance
- Pensions tax relief — amendments to the relief at source legislation
- Change to data HMRC collects from customers
- Dealing with promoters of tax avoidance
The below consultations have been released:
- Mass Balance approach to account for chemically recycled plastic for Plastic Packaging Tax
- Taxation of Employee Ownership Trusts and Employee Benefit Trusts
- Review of the VAT Terminal Markets Order legislation
You can see all the legislation and documents that have been published, here. Your input is welcomed on the consultations and draft legislation published, to help shape a more modern and efficient tax system.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
