On 19 March 2020 Finance Bill 2020, which will become Finance Act 2020 after Royal Assent, was published.
On 19 March 2020 Finance Bill 2020, which will become Finance Act 2020 after Royal Assent, was published. The Finance Bill is largely as expected following the Budget on 11 March 2020 but there are areas where the legislation has provided significant further detail and we have included articles on some of these below. There were also a number of consultations published alongside this. At the moment no details have been published on the exact timetable for the passage of the Bill.
Due to the workings of Parliament, the formal name of the Bill is Finance Bill 2019-21 but as it is being commonly referred to as Finance Bill 2020 we will use this naming convention within Tax Matters Digest.
There are various areas where there have been key changes to the draft Finance Bill clauses published on 11 July 2019, or where significant new legislation has been introduced including the following which we have provided separate commentary on in this issue of Tax Matters Digest:
The Bill had also been due to include legislation on reforms to off-payroll working (IR35). The Government has now announced that these reforms will be delayed until April 2021. The relevant legislation has been omitted, but it is expected to be added (with the revised start date) as a Government amendment to the Finance Bill in due course. The implications of this deferral are discussed in a separate article.
Alongside the Finance Bill HMRC published a number of consultations concerning: anti-hybrid mismatch rules; the tax impact of the withdrawal of LIBOR, and the requirement for large businesses to notify HMRC of uncertain tax treatments. These are also covered in this edition of Tax Matters Digest.
A further consultation was launched on changes to prevent the loss of tax in the Construction Industry Scheme (CIS). This consultation proposes a new power which would allow HMRC to adjust CIS deductions claimed by sub-contractors on employer returns. It also sets out proposed changes to clarify or expand the scope of certain provisions of the CIS legislation, including the deemed contractor rules and deductions for materials. Some initial proposals to prevent loss of tax from the construction industry supply chains are also set out. This consultation closes on 28 May 2020.
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