Weekly tax highlights ― 26 April 2021

Produced by Tolley
Weekly tax highlights ― 26 April 2021

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly tax highlights ― 26 April 2021
  • Finance Bill 2021
  • Government amendments to Schedules 2 (trade losses carry-back), 5 (collective DC pensions) and 28 (VAT interest)
  • Public Bill Committee Stage
  • Coronavirus (COVID-19)
  • Online service now open for fourth self-employment income support scheme grant
  • HMRC guidance: self-employment income support scheme grant
  • Employment rights and coronavirus job retention scheme (CJRS)
  • European Commission extends customs and VAT waiver on imports of medical and protective equipment needed to fight coronavirus
  • Indirect taxes
  • More...

Finance Bill 2021

Government amendments to Schedules 2 (trade losses carry-back), 5 (collective DC pensions) and 28 (VAT interest)

The Government has tabled three sets of amendments to Finance Bill 2021 to be considered at the Public Bill Committee stage. The amendments affect the temporary extension of carry-back of trade losses, the new collective defined contribution pension schemes framework, and repayment interest for VAT.

On 20 April 2021, the Government published the following three sets of amendments to the Finance Bill 2021. These amendments will be considered by the Public Bill Committee:

  1. Schedule 2: temporary extension of carry-back of trade losses (amendment 16) ― para 3(5) of the Schedule has been removed. This clarifies that relief under Part 1 of Sch 2 is not available to a furnished holiday lettings business that is treated as a trade under Income Tax Act 2007, s 127

  2. Schedule 5: pension schemes ― collective money purchase benefits (amendments 17, 18) ― in para 20, references to Pension Schemes Act 2021, s 87(7)(b) have been added to ensure that new para 2(10) of Finance Act 2004, Sch 28 (as inserted by para 20 of the Bill) which deals with benefits payable by a collective money purchase scheme in the event of its being wound up, operates correctly in relation to a scheme governed by the law of Northern Ireland

  3. Schedule 28: VAT late payment interest and repayment interest (amendment 19) ― in the new Part 2A inserted into Schedule 54 to the Finance Act 2009 (FA 2009) (repayment interest), new para 12E is deleted. This removes the provision that would have prevented an amount of VAT credit from carrying repayment interest under FA 2009, Sch 54 for a period referable to the raising and answering of an inquiry by HMRC or the correction by HMRC of errors or omissions in a VAT return

For more details, see here.

Public Bill Committee Stage

The House of Commons Public Bill Committee (PBC) has invited comments on the

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