Weekly Tax Update - 15 August 2016

1. General

   1.1 Gift aid small donations scheme consultation responses

   The Government has issued a summary of responses to its consultation on the gift aid small donations scheme (GASDS).

   www.gov.uk/government/uploads/system/uploads/attachment_data/file/544955/Gift_Aid_Small_Donations_Scheme-summary_of_responses.pdf

   1.2 Consultation on Gift Aid and intermediaries

   The Government has issued a consultation on draft regulations giving intermediaries a greater role in administering Gift Aid. Responses are due by 5 October 2016.

   The aim is to simplify the existing process and increase Gift Aid on eligible donations. The new process would be voluntary and an alternative to the existing methods. Rather than completing a separate Gift Aid declaration for each charity, an individual would be able to complete one declaration per intermediary, who can then be authorised to complete declaration on their behalf for the rest of the tax year.

   www.gov.uk/government/uploads/system/uploads/attachment_data/file/544953/Gift_Aid_and_intermediaries-technical_consultation.pdf

   1.3 Consultation on stamp duty land tax

   The Government has issued a consultation on changes to the filing and payment process for stamp duty land tax (SDLT). Responses are due by 7 October 2016.

   The proposals are intended to make the filing and payment process faster and easier. The main proposed changes are:

   A reduction in the SDLT filing and payment window from 30 days to 14 days (to be implemented between 1 January 2018 and 1 March 2018); Mandatory online filing for agents, including penalties for failing to submit online; Mandatory electronic payment for agents including penalties for failing to pay online; Including the facility to allow a user to provide direct debit details on the online return; and Building in functionality to amend the SDLT return within 12 months. www.gov.uk/government/uploads/system/uploads/attachment_data/file/545091/Stamp_duty_land_tax-changes_to_the_filing_and_payment_process.pdf

   1.4 Crowdfunding and ISAs

   Following a consultation last year, HMRC has released draft legislation for including certain debt securities offered via a crowdfunding platform as qualifying investments for innovative finance ISAs. Interest, gains and other payments from these investments will qualify for tax advantages when held in an innovative finance ISAs.

   This will have effect from 1 November 2016.

   www.gov.uk/government/publications/income-tax-crowdfunding-and-individual-savings-accounts/income-tax-crowdfunding-and-individual-savings-accounts

2. Private client

   2.1 Distributions on winding up clearance requests

   HMRC has advised the CIOT that it has received several clearance requests for the new targeted anti-avoidance rule (TAAR) for certain distributions made on a winding up. This is due to the uncertainty as to its application. There is, however, no statutory clearance procedure for the new TAAR. HMRC has therefore drafted a standard reply which...