close
Share with your friends

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.

1000
Image of Sharon Baynham

Director, Tax Policy

KPMG in the UK

Contact

Also on home.kpmg

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:

© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal