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Legislation day: Finance Bill 2019/20 is on its way

Legislation day: Finance Bill 2019/20 is on its way

Draft legislation has been published for consultation ahead of Budget 2019.

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Image of Sharon Baynham

Director, Tax Policy

KPMG in the UK

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In accordance with the Government’s ‘Tax Policy Cycle’ for tax changes, the draft clauses for Finance Bill 2019-20 were published on 11 July 2019. On ‘Legislation Day’ or ‘L-Day’, as it is commonly referred to, various supporting documents were also published, including responses to consultations, most notably on (i) the proposed digital services tax, (ii) a new corporate capital loss restriction, (iii) off-payroll working (IR35) reforms and (iv) changes to the stamp taxes on shares consideration rules. Also, with immediate effect, there will be a new deferred payment option for corporation tax on profits or gains arising from certain intra-group asset transfers to EU/European Economic Area companies. The next step is for the draft legislation to be consulted upon until 5 September 2019 with the final contents of Finance Bill 2019-20 subject to confirmation at Budget 2019.

In this issue of Tax Matters Digest we provide high-level commentary on the following key pieces of draft legislation published for Finance Bill 2019-20:

  • The digital services tax which takes centre stage on L-Day as the Government continues to push its unilateral response to the tax challenges arising from the digital economy; 
  • A new corporate capital loss restriction for chargeable gains accruing on or after 1 April 2020 for companies chargeable to Corporation Tax; 
  • The rules for off-payroll working which, as anticipated, will be extended into the private sector, effective from 6 April 2020; and
  • A targeted market value rule for stamp duty/SDRT on transfers of unlisted shares between connected companies.

Further commentary on other key measures will be provided next week.

For further information please contact:

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