21 Mar Other Announcements
Child Care Scheme
A new childcare scheme is to be introduced to support working families with their childcare costs. For childcare costs of up to £6,000 per year, support of 20 percent will be available worth up to £1,200. From the first year of operation, all children under five will be eligible and the scheme will build up over time to include children under 12.
The scheme will provide support for some families where all parents are in work and not receiving support through tax credits or universal credit and where neither parent earns over £150,000 a year.
The new scheme will be phased in from autumn 2015 as the current system of Employer-Supported Childcare will be phased out for new applicants from autumn 2015.
Stamp duty land tax
A measure to amend section 45 of the Finance Act 2003 (transfer of rights) is introduced to support the Government’s anti-avoidance strategy with regard to stamp duty land tax (SDLT). The Government is trying to Put doubt on the ineffectiveness of a certain form of SDLT avoidance scheme. The scheme(s) in question include an on-going sale that is not to be completed for several years. This measure is yet further notice of the Government’s anti-avoidance strategy. This measure has an effect where rights are transferred on or after 21 March 2012 and before Royal Assent to Finance Bill 2013.
Data-gathering from card payment processors
It is proposed that HM Revenue & Customs will improve their data-gathering to support a more effective risk assessment of businesses that they consider are not declaring their full tax liability. The data they will be able to access will cover the monthly totals paid to merchants. It is envisaged that this will provide HM Revenue & Customs with information that enables them to identify those businesses that are not declaring their full sales. This measure will have an effect on and after the day it receives Royal Assent from Finance Bill 2013.
London Anniversary Games
An exemption providing an exemption from UK income tax relating to non-UK resident sportspeople competing in the British Athletics London Anniversary Games was announced on 15 February 2013. This initiative was implemented to help perpetuate the legacy of the 2012 Olympic and Paralympic Games in London. It is also similar to the income tax exemption to be provided for non-resident sportspeople who compete in the 2014 Commonwealth Games in Glasgow (announced 26 January 2012).
The measure which took effect on or after 15:00 on 20 March 2013 will be followed by a further statutory instrument to be published shortly. These changes seek to address aspects of the Offshore Funds Regulations 2009 and are intended to make aspects of the Regulations fairer for UK investors in offshore funds, and ensure that they are taxed in a similar way to investors in equivalent UK funds.