Today saw the issue of the draft 2012 Finance Bill. This is the second year in which the Government has published in draft as it adopts a more transparent, collaborative approach to setting tax policy.
In summary it is pretty much as expected and contains no real surprises. Having said that there are over 1100 pages to wade through – so much for tax simplification!
The headlines in the draft Bill are:
- The introduction of the proposed new Statutory Residency Test to determine an individual’s tax residency status will be delayed until 6 April 2013.
- Changes to the conditions to qualify for EIS status focussing on helping higher risk companies obtain finance together with simplification of some aspects of schemes.
- Confirmation that a new Seed Enterprise Investment Scheme (SEIS) will be introduced from April 2012 to encourage investment in start-ups.
- Confirmation that the rate of R&D for SME’s will increase to 225% from April 2012 together with some changes to scheme rules designed to increase competitiveness of the UK tax system
- A restriction on the ability to claim capital allowances on fixtures on second hand buildings
- The introduction of VAT cost sharing exemption for businesses which wish to join similar organisations to share costs
As we ruminate and cogitate the finer detail of the draft legislation, there is no doubt that this approach is a welcome departure from the annual frenzy around the Budget; but we suspect the Chancellor will keep something up his sleeve for Budget 2012!
For a summary of the main announcements:
For more information on the Finance Bill contact your usual RSM Tenon tax adviser.
