Finance Bill 2012
The Government published draft clauses for legislation to be included in Finance Bill ('the Bill') 2012 earlier this week. The draft clauses will be open to consultation until 10 February 2012, with the final legislation being enacted next summer.
There are some important measures for non-UK domiciled individuals and further details of ‘Seed Enterprise Investment Scheme’.
- Non-UK domiciled individuals: at Budget 2011, the Government announced a package of reforms to the taxation of non-domiciled individuals. Following consultation, the core reforms proposed are included in Finance Bill 2012 as announced. The measures include the introduction of a £50,000 annual remittance basis charge, for non-doms and a new relief to encourage business investment.
- Statutory residence test: further consultation has been announced, with a view to the statutory test of residence for tax purposes being introduced from April 2013, a year later than originally planned.
- ‘Seed Enterprise Investment Scheme’ (SEIS): announced in last week’s Autumn Statement, individuals investing in smaller, early stage companies raising equity may be able to take advantage of this new tax-advantaged venture capital scheme. The scheme will allow 50% Income Tax relief to investors who subscribe for shares and have a stake of less than 30% in the company and will apply to investments made on or after 6 April 2012. In addition, for the first year of the new scheme, i.e. 2012/13, capital gains realised on the disposal of assets which are reinvested through SEIS in the same year will be exempt from Capital Gains Tax.
- The Annual Exempt Amount for Capital Gains Tax has been frozen at £10,600 for 2012-13.
- Inheritance Tax: the Bill confirms that the reduced rate of IHT will be available for those leaving 10% or more of their estate to charity.
Contact us
For further details on the published proposals, please contact your local office or send an enquiry online.
