Building deduction rates down to 18%; Tax Law Rewrite latest; Customs
Inland Revenue[QQ] The rate of deduction which will apply to payments under the Construction Industry Scheme is to fall from 23% to 18%. This will apply to all relevant payments from 6 April 2000. (Press Release, 25 February 2000.) Compensation for mis-sold FSAVCS during the period covered by the FSA/PIA review announced on 28 February will from that day, be exempt from tax under a new extra statutory concession. (Press release, 28 February 2000.) The Tax Law Rewrite project has published its latest exposure draft for consultation. It contains more draft rewritten clauses on capital allowances and the rewritten clauses from earlier exposure drafts on capital allowances, making up a first draft Bill. (Press release, 29 February 2000.) The Revenue has published on its ‘What’s new’ web page two self-assessment inquiry questionnaires considering a range of issues, relating to both aspect and full ITSA inquiries. Closing date 24 March. www.inlandrevenue.gov.uk Customs & Excise There are no VAT press releases this week. However, there are two developments on the duties front which arguably raise questions about the scope of the tax system: Hoverspeed asked to end its cross-channel home wine delivery service and the advertising ban on overseas bookmakers. (News releases, 24 & 29 February 2000.) Customs’ home page is www.hmce.gov.uk English ICA Tax Faculty The Faculty has made a submissions to the Revenue on tonnage tax (TAXREP 9/00) and self assessment inquiries (TAXREP 10/00). For a copy, e-mail VWood@icaew.co.uk.