Further draft legislation for Finance Bill 2013

The Treasury has released more details on the legislation for inclusion in Finance Bill 2013 relating to Annual Residential Property Tax (ARPT), 15% Stamp Duty Land Tax (SDLT), Capital Gains Tax on non-natural persons disposing of high value property and restriction of allowances in the oil and gas industry.

This is in addition to the details published on 11 December. The draft legislation will be open for technical consultation as detailed below.

Annual Residential Property Tax

This legislation includes some additional clauses promised in December and clarification of the reliefs intended to exempt genuine commercial activities from the charge. Revised draft legislation to provide equivalent reliefs from the higher rate of SDLT is also published.

The government is still considering the responses to the current consultation on the draft legislation already published.

The technical consultation on this draft legislation is open for comment until 22 February.

CGT on property

Related to the measures above, Budget 2012 introduced a CGT charge on non-resident non-natural persons which dispose of UK residential property that is worth more than £2 million. The charge will apply to gains on disposals on or after 6 April 2013 (previously, in the post-Autumn Statement December 2012 materials, HMRC were saying the charge would have effect from Royal Assent).

Following consultation, the government has decided that, for consistency, CGT will also apply to non-natural persons that are resident in the UK in respect of gains built up on or after 6 April 2013. The draft legislation contains provisions that include UK resident companies within the scope of the charge. It also says that Corporation Tax will apply to the part of any gain built up before 6 April 2013, with the new CGT charge applying only to the gain built up on or after 6 April 2013.

The technical consultation on this draft legislation is open for comment until Friday 22 February.

Oil and gas

Draft legislation has been published on the restriction of allowances for certain decommissioning expenditure in the oil and gas industry.

The drafting of one clause published on 11 December has been found to be defective and a revised draft clause addresses this. Most of the relevant legislation was published on 11 December but a small amount was omitted and is now published.

The technical consultation for these clauses is open for comment until Monday 18 February.

The draft legislation and explanatory notes are available HERE

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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