Weekly Tax Update - Monday 19th January 2015

1. General

   1.1 Budget 2015 - have your say

   The government is seeking views on what individuals and businesses would like to see in Budget 2015, which will take place on Wednesday 18 March 2015.

   The government is encouraging original and innovative ideas, which will be considered by HM Treasury as part of the policy-making process. Ideally, proposals should set out the policy rationale, costs, benefits, impact (especially on economic stability and growth) and deliverability of proposals and be evidence based.

   To allow for proper consideration in advance of the Budget, representations should be made Friday 13 February 2015, either by an online submission or by email.

   target=_blankwww.gov.uk/government/news/budget-2015-have-your-say

   1.2 Genuine HMRC contact and phishing emails

   HMRC has issued another security reminder about identifying genuine HMRC contact and phishing emails. This alert provides up to date information on genuine contact, including by email and text, which taxpayers and tax credit claimants may receive from HMRC. It also sets out how to spot phishing emails and bogus websites.

   www.gov.uk/government/publications/genuine-hmrc-contact-and-recognising-phishing-emails/genuine-hmrc-contact-and-recognising-phishing-emails

2. Private client

   2.1 Trusts and Estates newsletter

   HMRC's latest Trusts and Estates newsletter includes articles on:

   the move of web content to gov.uk; bereavement service and the removal of form R27; Autumn Statement updates, including DOTAS - extension around IHT hallmark; IHT toolkit refresh; IHT online service plans. www.gov.uk/government/uploads/system/uploads/attachment_data/file/388356/141211_December_Newsletter-Final_draft_02.pdf

3. PAYE and employment

   3.1 Requirement to issue coding notices

   Further to the item in last week's Update on coding notices, the statutory instrument has been issued to remove certain obligations on HMRC and employers with respect to communication on tax code changes and end of year return questions.

   From 29 January 2015 SI 2015/2 permits HMRC to issue coding notices electronically. It also amends the PAYE regulations from 29 January 2015 so that HMRC does not need to notify the employee of their tax code where the employee's PAYE income is not chargeable to tax or where the employee has no liability to tax in respect of any PAYE income. It also removes the obligation for employers to complete the 'end of year questions' when submitting the final real time information (RTI) return for the year for returns filed on or after 6 March 2015.

   www.legislation.gov.uk/uksi/2015/2/pdfs/uksi_20150002_en.pdf

4. Business tax

   4.1 Scottish Government call for reform of UK oil & gas tax

   The Scottish Government has put forward a paper calling for reform of the North Sea oil & gas tax regime, proposing three changes:

   an investment allowance to provide support for fields that incur higher costs to develop; a phased and timetabled reversal of the increase in the Supplementary Charge implemented by the UK Government in 2011; and the introduction of an exploration tax credit to help increase levels of exploration and sustain future production. http://news.scotland.gov.uk/News/Scottish-Government-calls-for-vital-reform-of-Oil-Fiscal-Regime-144c.aspx

   4.2 Draft guidance - the new loan relationship corporate rescue exemption

   Draft Finance Bill 2015 introduces new CTA 2009 ss 322(5B) and 323A of that will remove the obligation to bring into account a loan relationships credit arising on a release, modification or replacement of debt in certain circumstances where a company is unable to pay its debts.

   If enacted, the new sections will apply to the release, modification or replacement of...