Further draft legislation for Finance Bill 2013

The government has published draft legislation for inclusion in the 2013 Finance Bill in relation to pensions drawdown, non-domicile taxation, trusts for vulnerable beneficiaries, and corporation tax exemptions for chief constables.

At Autumn Statement 2012 the government announced that it will raise the annual drawdown limit from 100% to 120% of the value of an equivalent annuity. HMRC has now published the legislation in draft which will bring this into effect.

The government has also stated that it will remove a tax charge under the remittance basis which can arise inadvertently in certain circumstances affecting UK resident non-domiciled individuals. HMRC has now published additional legislation in draft to bring this into effect.

On 11 December 2012 the government published draft legislation on the definition of trusts with vulnerable beneficiaries. HMRC has now published revised draft legislation containing detailed provisions originally planned to be introduced by secondary legislation but which will now be introduced via Finance Bill 2013.

There will also be a new corporation tax exemption for chief constables and commissioner of police of the metropolis. The relevant legislation has been published in draft and will take effect retrospectively from the dates the new legal entities came into existence. The Police Commissioner rules take effect from 16 January 2012 and for Chief Constables the effective date is 22 November 2012.

The deadline for comments on the draft legislation is 6 February 2013.

Details are available from HMRC

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Sharon Khin |Specialist tax writer and solicitor

Sharon is a qualified solicitor of the Supreme Court of NSW, Australia and previously worked at Deloitte specialising in advising fi...

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