Other announcements – Kevin Beare & Co.
Schemes covered by Disclosure of Tax Avoidance Scheme (DOTAS) rules or counteracted under the General Anti-Abuse Rule (GAAR).
New rules were introduced to accelerate payments of tax associated with schemes covered by the DOTAS and the GAAR.
The measure widens the circumstances where the disputed tax sits with the Exchequer during a dispute, putting all taxpayers involved in avoidance schemes on the same footing. This new power will remove the cash flow advantage for the taxpayer of holding onto the disputed tax during an avoidance dispute. There is no change to the tax liability owed.
HMRC will issue a Notice to Pay to any taxpayer from whom there is an open enquiry, or the matter is under appeal, and who has claimed a tax advantage by the use of arrangements that:
- Fall to be disclosed under DOTAS, or
- HMRC counteracts under the GAAR following an opinion of the GAAR advisory panel that, in the panel’s opinion, the arrangements are not a reasonable course of action.
The measure will have effect from the date the Finance Bill 2014 receives Royal Assent.
Carbon price floor
The carbon price support (CPS) rate per ton of carbon dioxide (CO2) is to be capped at a maximum of £18 from 2016/17 to 2019/20. This is intended to freeze the CPS rates for each commodity affected across the period at around the 2015/16 levels.