Finance Bill 2019-20 receives Royal Assent on 22 July 2020
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Finance Bill 2019-20 receives Royal Assent on 22 July 2020
Finance Bill 2019-20 receives Royal Assent on 22 July 2020
Fri 24 Jul 2020
Finance Bill 2020 received Royal Assent on 22 July 2020 (see here). In relation to Covid-19, perhaps the most immediate consideration for those that have received support payments such as under CJRS, is that:
- Employers that have either knowingly misused the furlough scheme, or think they may have accidentally done so, have a 90-day window to voluntarily notify of this situation to avoid being automatically treated as a deliberate defaulter for penalty purposes;
- HMRC’s powers to check that any coronavirus-related grants made to employees have been used correctly are extended.
Amongst the measures that take effect from the date of Royal Assent are those (with reference to sections and schedules in Finance Act 2020 as per the version of the Bill sent to the House of Lords). For a further discussion of these or any other tax matters, please get in touch with a member of the Mazars tax advisory services team.
- S73 & 74 – IHT excluded property changes. This provides that (i) additions of assets by individuals domiciled in the United Kingdom to trusts made when they were non-domiciled cannot be excluded property and are therefore within the scope of IHT, and (ii) includes revised tests to determine the excluded property status of property transferred between trusts so that it will now depend on the current domicile of the settlor (or other person) that caused the property to move to the other trust. These provisions apply for chargeable transfers made on or after 22 July 2020.
- S77 & 78 & 79 – transfers of unlisted securities to connected persons, where the consideration includes an issue of shares, will be charged on the higher of the value of the consideration or the value of the unlisted securities for instruments executed on or after 2 July 2020, or conditions satisfied or agreement made on or after this date. S 79 contains the relaxations to the application of FA 1986 s77A where an interest of at least 25% has been held for a three year period prior to the issue of consideration shares.
- S100 – joint and several liability for company directors in respect of certain tax amounts collected by companies on behalf of the Government, for periods ending on or after 22 July 2020 o,r events occurring on or after this date, or Tribunal proceedings commencing on or after this date.
- Sch14 refinements to the operation of the GAAR (such as simpler notices and clarification on the ability to continue an enquiry despite ending a GAAR enquiry) will apply for HMRC adjustments and notices given on or after 22 July 2020.
- Sch16 – provisions relating to recovery of Coronavirus support payments such as job retention scheme payments (CJRS) incorrectly made. In order to avoid being treated as a deliberate defaulter, subject to higher penalties, notification of an incorrect payment is required by the later of:
- 20 October 2020 or;
- 90 days after the day on which the income tax to recover the payment became chargeable (this is either the date of receipt of the funds or the date the recipient no longer became entitled to the funds as a result of a change of circumstances).
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