Finance Act 2020

Finance Act 2020
Full text of the Act as enacted on 22 July 2020.

Bill documents — Finance Act 2020
Text of the latest Bill and previous versions, amendment papers, and progress through parliament. The second House of Lords reading and all remaining stages of the Bill took place on 17 July 2020.

The draft legislation for the Bill originally named Finance Bill 2019–20 was published on 11 July 2019. The renamed Finance Bill 2020 was published on 19 March 2020. Supporting documents for each of these periods have been collated separately under Finance Bill 2020 collection and Finance Bill 2019–20 collection.

Draft Finance Bill 2019-20 and ICAEW responses

Draft legislation published for Finance Bill 2019-20
11 July 2019, HM Treasury and HMRC
Draft legislation, supporting documents and tax information and impact notes (TIIN) covering proposed measures on income tax, chargeable gains, corporation tax, digital services tax, and other taxes.

ICAEW REP 86/19 Off-payroll working from April 2020
5 September 2019, ICAEW
ICAEW representation responding to the draft legislation. It suggests that the legislation will create compliance burdens and recommends a delay to the start date to give stakeholders time to prepare and resolve operational issues.

ICAEW REP 87/19 Digital services tax consultation
5 September 2019, ICAEW
ICAEW representation responding to the draft legislation. It highlights imbalances between the proposed legislation and guidance, lack of clarity in the definition of digital services activities, and concerns about deadlines.

ICAEW REP 88/19 Changes on tax abuse using company insolvencies
5 September 2019, ICAEW
ICAEW representation responding to the draft legislation. It warns that the proposed legislation will give HMRC extensive powers that may make doing business through UK incorporated companies significantly less attractive and recommends that powers be closely defined to minimise unintended consequences.

ICAEW REP 90/19 Inheritance tax and excluded property added to and transferred between trusts
5 September 2019, ICAEW
ICAEW representation responding to the draft legislation. It raises concerns with the proposals and recommends that they are delayed for 12 months and that a proper consultation be carried out.

ICAEW REP 91/19 Changes to ancillary reliefs in capital gains tax private residence relief
5 September 2019, ICAEW
ICAEW representation responding to the draft legislation. It highlights concerns about reducing the final exempt period on the sale of a principal private residence and ESC D21.

Oral evidence: Draft Finance Bill 2019-20: off-payroll working rules
20 February 2020, Select Committee on Economic Affairs – Finance Bill Sub-Committee
Transcript of oral evidence submitted by ICAEW to the House of Lords Finance Bill Sub-committee inquiry into off-payroll working.

Budget 2020

Finance Bill: The Financial Secretary to the Treasury (Jesse Norman) written statement
25 February 2020, House of Commons Hansard
The Financial Secretary to the Treasury states that the government remains committed to legislating those measures published in July 2019, subject to confirmation at Budget 2020.

Budget 2020
11 March 2020, HM Treasury
Collection of Budget documents and the text of the Chancellor's speech presented on 11 March 2020. See ICAEW's recommendations and reaction to UK Budget 2020.

Finance Bill 2020: Measures with effect from 11 March 2020
11 March 2020, HMRC
Further details on changes to the Entrepreneurs' Relief lifetime limit for Capital Gains Tax, changes to Top Slicing Relief on life insurance policy gains, increase in structures and buildings allowance for capital allowances, and surcharge on banking companies for transferred-in losses.

Draft Finance Bill 2020 and ICAEW responses

Finance Bill 2020 legislation and explanatory notes
19 March 2020, HMRC
Text of the Bill as introduced with explanatory notes. Supporting documents, measures with effect from 11 March 2020 and other notes are listed in the Finance Bill 2020 collection.

ICAEW REP 15/20 Capital gains tax-private residence relief FB19-21 clause 23
20 April 2020, ICAEW
ICAEW representation responding to the draft legislation. It recommends delaying the proposals to make it simpler for taxpayers to understand when new rules apply and to help stimulate a currently-stagnant property market arising from the coronavirus pandemic.

ICAEW REP 16/20 Inheritance tax-excluded property FB19-21 clause 72
20 April 2020, ICAEW
ICAEW representation responding to the draft legislation. It recommends that the proposed amendment be removed from the Finance Bill in order for a proper consultation to be carried out. 

ICAEW REP 17/20 HMRC debts-priority on insolvency FB19-21 clauses 95-96
20 April 2020, ICAEW
ICAEW representation responding to the draft legislation. It argues for the proposed amendments to be withdrawn as they will deter lending and are at odds with government efforts to foster UK enterprise culture.

ICAEW REP 18/20 Joint and several liability of company directors FB19-21 clause 97 and schedule 12
20 April 2020, ICAEW
ICAEW representation responding to the draft legislation. It concludes that the measure should be withdrawn and a fuller consultation is undertaken to ensure that the risk of unintended consequences is minimised.

ICAEW REP 19/20 Off-payroll working - extension to private sector - estimated cost burden and dispute resolution Finance Bill 2019-20
30 April 2020, ICAEW
ICAEW representation comprising of written evidence submitted to the House of Lords Select Committee on Economic Affairs Finance Bill Sub-committee.

Taxation of coronavirus (COVID-19) support payments
29 May 2020, HMRC
Draft new clause with explanatory note and draft tax information and impact note (TIIN).

ICAEW REP 33/20 Off-Payroll working (Finance Bill 2019-21)
5 June 2020, ICAEW
ICAEW representation responding to Finance Bill amendments dated 18 May 2020. It recommends that measures enacting the expansion of IR35 to large private sector companies should be delayed.

ICAEW REP 37/20 Draft legislation: Taxation of coronavirus (COVID-19) support payments
12 June 2020, ICAEW
ICAEW representation responding to new draft legislation. It outlines concerns about the short time period that taxpayers have to notify HMRC if they are not entitled to a support payment and about the power to charge penalties.

Summer Statement 2020

A Plan for Jobs 2020
8 July 2020, HM Treasury
Text of the Chancellor's speech presented on 8 July 2020 and further documents detailing measures aimed at economic recovery from the COVID-19 pandemic. See ICAEW's reaction and analysi of the Summer Statement 2020.

Finance Act 2020 enacted

Finance Act 2020
22 July 2020, Legislation.gov.uk
Text of the Act as enacted on 22 July 2020.

Tax experts have produced analysis of the clauses from the initial release of the draft clauses through to the passage of the bill through Parliament.

KPMG Tax Matters Digest
A bi-weekly newsletter covering UK tax developments with KPMG's analysis. Key commentary on the Finance Bill 2020 include:

• The UK Digital Services Tax: Now a reality (23 March 2020)
• Pension changes affect both individuals and employers (23 March 2020)
• Entrepreneurs’ relief is no more (at least in name) (23 March 2020)
• Research and Development Expenditure Credit increases to 13 percent (23 March 2020)
• Off-Payroll Working reforms deferred until April 2021 (23 March 2020)
• Off-Payroll Working from April 2021 – new legislation published (1 June 2020)
• Are we edging closer to enacted UK DST legislation? (13 July 2020)

R&D tax relief reforms risk stifling innovation in small firms, RSM warns
RSM, 24 May 2019
Commentary on proposed measures to place a cap on the amount of payable R&D tax credit that a qualifying loss-making business can receive.

BDO Budget Cycle
A hub collecting together BDO's updates and commentary on the Finance Bill and Budget, including articles on:

• Payable R&D tax credits for SMEs (15 May 2019)
• EIS - Approved Knowledge Intensive Company investment fund (12 July 2019)
• UK digital services tax to go ahead (15 July 2019)
• Stamp Duty and SDRT changes (15 July 2019)
• Corporate capital loss restriction from April 2020 (16 July 2019)
• Insolvency tax measures (16 July 2019)
• Changes to capital gains tax – private residence relief and lettings relief (16 July 2019)

• View a list of articles and books in our collection on Finance Act 2020

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The Library holds an extensive collection of Finance Acts (from the 19th century onwards), Finance Bills (from 1951 onwards), debates on the Finance Bill as recorded in Hansard, and Standing Committee Debates on the Finance Bills. Alongside this you can also find many publications from the ICAEW and other bodies on the Finance Bills and Acts.

For full details of our holdings in this area, see our guide to Finance Acts and Bills in the Library collection.

We also maintain an online archive of links and resources for Finance Acts 1980–1995 and for Finance Acts 1996–.