The Government has released a new draft of the Finance Bill 2017, which sets out proposals to use policies introduced during the Budget 2016 and Autumn Statement announcements support businesses through the tax system while simultaneously clamping down on tax evasion and avoidance.
According to reports, the Finance Bill intends to:
- Introduce a new ‘tax avoidance scheme’ penalty.
- Create a legal requirement to correct failures on the payment of UK tax on offshore investments and accounts.
- Prevent the use of ‘disguised remuneration’ schemes.
Under the proposals, large companies will need to report information regarding any complex financial structures, including offshore accounts, to HM Revenue & Customs (HMRC).
The tax authority will then send out ‘notification numbers’ for clients of such companies to use in their individual tax returns or online via their personal tax account (PTA).
A consultation regarding the draft Finance Bill 2017, first published 5 December 2016, will run until 1 February 2017, according to reports.
Further information and final details are expected to form part of the 2017 Budget announcements.
The overview of the draft Finance Bill 2017 can be accessed here: