The 2012 Finance Bill – draft legislation issued

On 6 December 2011 the government published draft legislation on a number of measures announced in the March 2011 Budget, on which it has been consulting over the summer. This legislation will form the major part of the 2012 Finance Bill.

The expected legislation on a statutory test of UK residence for individuals has not been published, because the government wishes to consult further. It will make a further announcement at the time of the 2012 Budget and legislation will be included in the 2013 Finance Bill, to take effect from April 2013 rather than April 2012 as originally proposed.

Details of the most significant announcements can be found by clicking the links below. A full list of all the measures announced is on our draft Finance Bill 2012 overview.

Personal taxation

• Income tax rates and thresholds for 2012/13
• Seed Enterprise Investment Scheme (SEIS)
• Enterprise Investment Scheme and Venture Capital Trusts
• Reforms to the taxation of non-UK-domiciled individuals
• Gains and losses on foreign currency bank accounts removed from CGT
• Transfer of assets abroad and capital gains on assets held by ‘close’ companies overseas

Business taxation

• Rates of corporation tax
• Reform of controlled foreign company rules
• The ‘patent box’: a 10% corporation tax rate for income from patents
• R&D tax relief: improvements to relief for both SMEs and large companies
• 100% first-year allowances for plant and machinery in designated areas within enterprise zones 
• Capital allowances on fixtures acquired from previous claimant 

Administration

• Legislation to give effect to the UK-Switzerland agreement on tax co-operation, signed on 6 October 2011

Value added tax

• Removal of low value consignment relief for goods from the Channel Islands. Announced on 10 November 2011
• Cost-sharing exemption. Announced on 29 November 2011