Recently opened consultations, 30 April 2018

Apr 30, 2018

Several new consultations have been opened recently.

Capital Gains Tax: Payment window for residential property gains – closes 6 June 2018

This consultation is inviting views on the scheme for making payments on account of capital gains tax when disposing of residential property.

From April 2020, a payment on account of Capital Gains Tax (“CGT”) will need to be made when a residential property is sold or otherwise disposed of, such as by giving it away. Payment will be due within 30 days of the completion of the disposal. The changes mainly affect those disposing of a second home or rental property.

They will not apply where the gains are not chargeable to CGT, for example, where the gains are covered by private residence relief.

This is a technical consultation on:

  • how the amount payable will be calculated
  • the administration of those payments
  • changes to an existing CGT payment on account system for non-residents who dispose of UK residential property

Tax abuse and insolvency – closes 20 June 2018

At Autumn Budget 2017 and Spring Statement 2018, the government announced that it would explore ways to tackle those who deliberately abuse the insolvency regime in trying to avoid or evade their tax liabilities, including through the use of phoenixism.

HMRC are seeking views on how to tackle this abuse after reading the discussion paper ‘Tax Abuse and Insolvency’. This looks at several behaviours related to misuse of corporate insolvency - tax avoidance, tax evasion and repeated non-payment of tax - to identify potential solutions which could include legislation, operational measures or other action.

This consultation only targets corporate bodies that exploit insolvency in this way and is not aimed at any particular size or type. Companies that enter insolvency for genuine commercial reasons will not be affected.

Tax avoidance involving profit fragmentation – closes 8 June 2018

HMRC is inviting views on proposals to tackle tax avoidance schemes designed to move UK profits outside the charge of UK tax, often using offshore trusts and companies.

The final legislation would take effect from April 2019 and would bring such profits within the UK tax charge, require notification of the arrangements to HMRC and earlier payment of tax.

The spreadsheet that allows you to check the status of tax policy consultations has also been updated.