Finance Bill 2016 paves way for even simpler tax system and tough offshore evasion regime
New draft tax legislation has been published today to implement policies published at Summer Budget and Autumn Statement 2015.
The government has today (Wednesday 9 Wednesday) published draft tax legislation to implement policies published at Summer Budget 2015 and Autumn Statement 2015.
It has also published new tax consultations and responses to policy consultations which took place over the past year.
Finance Bill 2016 continues the government’s commitment to stop tax evasion, tackle tax avoidance and ensure companies pay their fair share of tax through:
- clamping down on tax avoidance and ensuring multinationals pay their fair share of tax by stopping the use of hybrid mismatch arrangements
- introducing a new tougher anti-offshore tax evasion regime, which will include new criminal and civil sanctions
- introducing new measures to improve large business tax compliance, including a new requirement that large businesses publish their tax strategies and special measures powers to tackle a minority of large businesses that persistently engage in aggressive tax planning
One of the main priorities of this government is to ensure the British tax system is simpler and more effective for taxpayers.
This Finance Bill will build on the excellent progress made under the previous Parliament by establishing the Office of Tax Simplification (OTS) on a statutory basis and outlining its core functions.
To support hardworking savers, Finance Bill 2016 will implement a personal savings allowance that will mean as of 6 April, 95% of taxpayers will pay no tax on the first £1,000 of savings income if they are a basic rate taxpayer, and the first £500 if they are a higher rate taxpayer.
Finally, our vital creative sector will further benefit from the introduction of a new tax relief for orchestras at a rate of 25% on qualifying expenditure.
David Gauke, Financial Secretary to the Treasury, said:
The government is committed to creating a tax system that is easy to understand, simple to engage with and hard to evade. It is essential that it successfully supports investment in business, as well as those who work hard and save.
That’s why I am pleased to be announcing draft legislation that will help us deliver on this commitment to taxpayers.
The consultation on the draft legislation will run until Wednesday 3 February, with the final details being confirmed in Budget 2016 and finally introduced in Finance Bill 2016.