Draft Finance Bill and accompanying documents
Published: 06 December 2016
HMRC has published the Draft Finance Bill 2017 (and explanatory notes – here). The document provides an overview of legislative changes to tax law which the government plans to introduce in the Finance Bill 2017, in secondary legislation, and (in some cases) in future Finance Bills. HMRC also released draft legislation to amend the existing Offshore Funds (Tax) Regulations 2009 (which make provision for the tax treatment of participants in offshore funds). This instrument makes changes to the principal Regulations so that, in the case of interests held in reporting funds, performance fees charged by investment managers will no longer be deductible against reportable income but will instead reduce any gain on disposal of the interest (explanatory memorandum –here). The changes will apply to the calculation of reportable income for reporting periods commencing on or after 1 April 2017. Comments are invited on this instrument by 27 January 2017. Other provisions include: (1) the reform of the Substantial Shareholding Exemption for qualifying institutional investors (policy paper – here); (2) a summary of responses to the consultation document on authorised contractual schemes (here) and to the discussion paper on tax deductibility of corporate interest expense (here); and (3) a consultation document Tackling offshore tax evasion: A requirements to notify HMRC of offshore structures – this has a response date of 27 February 2017, and the AIMA Tax Committee will consider whether to submit a response. For further information, please contact Paul Hale or Enrique Clemente.