• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        Key dates
        Book distribution
        Timetables
        FAE Elective Information
      • Exams
        Exam Info: CAP1
        E-assessment information
        Exam info: CAP2
        Exam info: FAE
        Reasonable accommodation and extenuating circumstances
        Timetables for exams & interim assessments
        Interim assessments past papers & E-Assessment mock solutions
        Main examination past papers
        Information and appeals scheme
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Conferring dates
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Learning Hub data privacy policy
        Online Payment FAQs
        Audit qualification
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        What do Chartered Accountants do?
        5 Reasons to become a Chartered Accountant
        Student benefits
        School Bootcamp
        Third Level Hub
        Study in Northern Ireland
        Events
        Blogs
        Member testimonials 2021
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Training firms update details
        Recruitment to and transferring of training contract
        Interview preparation and advice
        The rewards on qualification
        Tailoring your CV for each application
        Securing a trainee Chartered Accountant role
      • Support & services
        Becoming a student FAQs
        Who to contact for employers
        Register for a school visit
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        Young Professionals
        Careers development
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Other client services
        Practice Consulting services
        What's new
      • Overseas members
        Working abroad
        Working in Australia
        Overseas members news
        Tax for returning Irish members
      • In business
        Networking and special interest groups
        Articles
      • Public sector
        Public sector news
        Public sector presentations
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        CHARIOT/Institute Technical content
        TaxSource Total
        Audit Qualification requirements
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • Find a firm
  • Jobs
  • Login
☰
  • Home
  • Knowledge centre
  • Professional development
  • About us
  • Shop
  • News
Search
View Cart 0 Item

News

  • Home/
  • News
☰
  • News
  • News archive
    • 2020
    • 2019
  • Press releases
    • 2022
    • 2021
    • 2020
  • Newsletters
  • Press contacts
  • Media downloads
  • Podcasts Chartered Accountants Ireland
  • Budget day news

Latest Finance Bill begins its path through Parliament

Mar 15, 2021

Last week what will become Finance Act 2021 (Finance No. 2 Bill) commenced its various stages through Parliament. The usual explanatory notes are also available.

HMRC sent Chartered Accountants Ireland the following information on the key elements to the Finance Bill.

“COVID-19 easements:

  • Extension of Reduced Rate for Hospitality and Tourism  

The Chancellor announced at Budget 2021 that the temporary reduced rate of 5 per cent (which came into force on 15 July 2020) will be extended to 30 September 2021. 

From 1 October 2021 the reduced rate for these supplies will be replaced by the introduction of a new reduced rate of VAT of 12.5 per cent which will remain in effect until 31 March 2022. The types of supplies that the relief applies to will remain unchanged when the new temporary 12.5 per cent rate is introduced on 1 October 2021.  

Further guidance on the operation of the new reduced rate will be published when it comes in to force on 1 October 2021.  

Further information can be found in our recently published Revenue and Customs Brief, including links to more information. 

Stamp Duty Land Tax (SDLT) nil rate extension 

As announced at Spring Budget 2021, the temporary increase to the Stamp Duty Land Tax (SDLT) nil rate band for residential property in England and Northern Ireland that was due to end on 31 March 2021 has been extended. The nil rate band will continue to be £500,000 for the period 8 July 2020 to 30 June 2021. From 1 July 2021 until 30 September 2021, the nil rate band will be stepped down to £250,000. The nil rate band will return to the standard amount of £125,000 from 1 October 2021.  

VAT New Payment Scheme (NPS) 

The VAT Deferral New Payment Scheme (NPS) was announced by the Chancellor of the Exchequer on 24 September 2020 as part of the Winter Economy Plan. The legislation being introduced today] provides the legal framework for NPS to operate and a penalty that may apply to businesses that take no action to pay their deferred VAT. Businesses that deferred VAT to 31 March 2021, which would otherwise have been payable between 20 March 2020 and June 2020, are now able to join NPS to spread payments into 2022 across up to 11 interest-free instalments. Businesses that intend to join NPS need to do so before the end of June 2021. Businesses that do not pay in full by 31 March 2021 or sign up to NPS may be liable to a penalty. 

Income tax exemption for employer-provided and employer-reimbursed COVID-19 antigen tests 

The Finance Bill 2021 includes legislation to introduce a retrospective income tax exemption for employer-provided and employer-reimbursed coronavirus antigen tests for the tax years 2020 to 2021 and 2021 to 2022. There will be no income tax liability for the employee or employer. More information can be found in the income tax exemption for employer-reimbursed coronavirus antigen tests tax information and impact note.  These measures will take effect on and after Royal Assent of Finance Bill 2021. The corresponding National Insurance contributions disregard is already in force.  

A further tax information and impact note on the extension of the measure for 2021 to 2022 will also be published in due course.  

Super-deduction allowance 

From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim: 

o    a 130 per cent super-deduction capital allowance on qualifying plant and machinery investments 

o    a 50 per cent first-year allowance for qualifying special rate assets. 

The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances regime is amongst the world’s most competitive. 

 Other items:

Stamp Duty Land Tax (SDLT) and Annual Tax on Enveloped Dwellings (ATED) relief for housing co-operatives 

As announced at Spring Budget 2021, and following consultation on draft legislation over the summer of 2020, the government will introduce new reliefs from ATED and the 15 per cent rate of SDLT for certain qualifying housing co-operatives.  

For SDLT, the relief can be claimed for land transactions where the effective date of the transaction is on or after 3 March 2021. For ATED, the relief will apply to chargeable periods beginning on or after 1 April 2020, allowing eligible housing co-operatives who have already paid ATED for that period to claim a refund.  

A tax information and impact note is published on GOV.UK. 

Restoring plant or machinery leases to pre-COVID-19 treatment 

The government has included primary legislation in the 2021 Finance Bill for restoring plant or machinery leases to pre-COVID-19 treatment.  

This measure applies only where anti-avoidance legislation is triggered between 1 January 2020 and 30 June 2021, due to a plant or machinery lease term being extended in relation to COVID-19. Either party to the lease can disregard this easement, an election which will be binding upon both parties. 

The published policy paper is available on GOV.UK.

Civil Information Powers: 

The government has included legislation in the Finance Bill amending HMRC’s civil information powers. The legislation allows HMRC to issue a notice to a financial institution to request documents and information, without the requirement for tribunal approval, to help check a taxpayer’s tax position or assist with collecting a tax debt. The legislation follows a consultation in 2018 after which a summary of responses and draft legislation was published last year. A tax information and impact note has been published about these changes. 

Plastic Packaging Tax 

Following a technical consultation, the 2021 Finance Bill includes primary legislation for the new Plastic Packaging Tax, due to take effect from 1 April 2022. We are working closely with stakeholders to develop guidance to help businesses prepare for the change – and aim to publish this on GOV.UK later this year.”

END OF HMRC EMAIL 

The latest news to your inbox

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, D02 YN40, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast,
Antrim, BT2 8BG, United Kingdom

TEL: +44 28 9043 5840

Connect with us

Something wrong?

Is the website not looking right/working right for you?
Browser support
CAW Footer Logo-min
GAA Footer Logo-min
CCAB-I Footer Logo-min
ABN_Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
  • Sitemap
LOADING...

Please wait while the page loads.