The Spring Finance Bill 2023 was published last week (official title Finance No. 2 Bill) and features many of the announcement made recently on budget day. Second reading of the Bill is due to take place this week in the House of Commons on Wednesday 29 March.
The Bill includes legislation to implement the income inclusion rule and the domestic minimum tax from the Pillar Two rules in the UK for accounting periods beginning on or after 31 December 2023, in line with the Chancellor’s announcement at the Autumn Statement last year.
According to HMRC, this draft legislation reflects feedback received as part of the technical consultation which also incorporates the transitional safe harbour and, where appropriate, the administrative guidance published by the OECD.
Any forthcoming administrative guidance will also be reflected in legislation, where legislation is required including legislation on qualified flow through tax benefits upon which the Inclusive Framework has committed to provide further guidance.