By ACCA’s Budget team
The Government announced that it will abolish 43 tax reliefs, following a report and recommendations by the Office of Tax Simplification.
Tax reliefs to be abolished:
Those which have been targeted by the Finance Bill 2011 are:
- Charities – transitional relief on distributions;
- Millennium gift aid;
- National Savings Bank ordinary account interest;
- Payroll giving 10 per cent supplement;
- Exemption for certain assignments by seamen;
- Instruments relating to national Savings; and
- Transfers in relation to ships and vessels.
Those scheduled for abolition in the Finance Bill 2012 are:
- Payments to mariners to be disregarded;
- Grants for giving up agricultural land;
- Pool betting duty payments relating to safety improvement at football grounds or for the arts;
- Mineral royalties;
- Payments for the benefit of family members;
- Cycle to work days – provision of meals;
- Luncheon vouchers;
- Pools payment for football ground improvements;
- Pools payment for support for games;
- Disregard for certain apprentices and students coming to the UK;
- Assistance in identifying lost or stolen credit cards;
- Nationalisation schemes; and tax reserve certificates issued by HM Treasury.
Future abolition:
- Class 1A NICs – exemption for prescribed general earnings;
- Class 4 NICs – allows deduction in next tax year of losses incurred in 1989-90 or previous tax year where losses from income other than trade or profession or vocation;
- Deeply discounted securities – incidental expenses;
- Life assurance premium relief;
- Life assurance premiums paid by employers under employer-financed retirement benefit schemes;
- Capital allowances – flat conversion allowances;
- Capital allowances – safety at sports grounds;
- Certain leases granted by registered social landlords;
- Disadvantaged area relief (Stamp Duty);
- Exempt instruments;
- Partial relief for company acquisitions;
- Shared ownership transactions;
- Transfers to registered social landlords;
- Visiting forces and allied headquarters;
- Disadvantaged area relief (SDLT);
- Angostura bitters;
- Black beer;
- Land remediation relief;
- Compensation for mis-sold pensions;
- Harbour authorities;
- Harbour reorganisation schemes; and
- Transfers in relation to harbour reorganisations schemes.
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