TaxPersonal TaxHMRC extends date for withdrawal of transitional relief on investment growth

HMRC extends date for withdrawal of transitional relief on investment growth

HMRC intends to extend the date for withdrawal of transitional relief on investment growth from 30 November 2016 to 31 March 2017

HMRC extends date for withdrawal of transitional relief on investment growth

HMRC intends to extend the date for withdrawal of transitional relief on investment growth from 30 November 2016 to 31 March 2017.

The withdrawal of the relief was announced at Budget on 16 March 2016, as part of the package of changes to tackle the use of disguised remuneration avoidance schemes (such as Employee Benefit Trusts (EBTs) and contractor loans) and ensure that those who have used these schemes pay their fair share of tax and National Insurance contributions.

The transitional relief was intended to work alongside the EBT settlement opportunity, which closed on 31 March 2015.

“Customers, their advisers and promoters should be aware that HM Revenue and Customs continues to believe that disguised remuneration schemes don’t work, and will challenge these rigorously,” the tax authority said.

The government wants to ensure all users of disguised remuneration schemes have the opportunity to settle with HMRC before the transitional relief is withdrawn.

“Therefore an amendment to Finance Bill 2016 has been tabled to extend the date for the withdrawal to 31 March 2017. The amendment, once agreed by Parliament, will mean that users who want to benefit from the transitional relief on investment growth in Para 59 must have settled on or before 31 March 2017,” it said.

 

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