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TAX NEWS

Finance Bill includes basis period reform rules

Article

Published: 04 Nov 2021 Update History

Finance (No. 2) Bill 2021-22 was published on 4 November 2021. While many changes are effective from April 2022, it also includes the legislation for basis period reform, where the transition will happen in 2023/24. The Tax Faculty outlines its contents.

The Bill, comprising 102 clauses and 16 Schedules, contains significantly more legislation than previously published on “Legislation-Day” on 20 July, and subsequently, owing to the intervening Autumn Budget. 

ICAEW’s Tax Faculty had responded to key aspects of the draft legislation including:

Measures where there has been no previous draft legislation include:

  • extension of the increased rate of annual investment allowance until 31 March 2023 (cl12);
  • changes to creative industry reliefs (cls16–22);
  • the extended reporting and payment period for property disposals (cl23);
  • cross-border group relief changes (cl24 and Sch 4);
  • changes to the tonnage tax regime (cl25); and
  • expansion of the dormant asset scheme (cl31 and Sch 6). 

Alongside the Bill and explanatory notes, HMRC has also published the consultation outcome for basis period reform

ICAEW’s Tax Faculty, together with its active members, will prepare guidance and support on the key changes, including basis period reform in due course.

The faculty will be making representations on the Finance Bill and would welcome any comments – please send them to Peter Bickley.   

Read more: 

Budget webinar

The Tax Faculty reflected on the Chancellor's announcements in this essential webinar. Freely available, watch the recording to find out what the Autumn Budget 2021 could mean for you and your clients.

Analysis from ICAEW's experts on the Autumn Budget 2021 and the comprehensive spending review published on 27 October 2021.
More on Autumn Budget 2021

Read the rest of the Tax Faculty's summary of the tax related announcements in the Autumn Budget on 27 October 2021.

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