Key Facts

• The Finance Bill Committee will meet at specified times on January 16, 18, and 30.
• Clause 3 discusses films, television programmes, and video games produced by companies.
• Schedule 2, Clause 4 stand part, Schedule 3, Clause 5 stand part, Schedule 4, Clause 6 stand part, Schedule 5, Clause 7 stand part, and Schedule 6 are to be discussed.
• Film and high-end TV productions receive a credit of 34%.
• Children’s TV and animated TV/film will receive a credit of 39%.
• Video games expenditure credit rate is 34%.
• The changes are expected to impact about 3,000 businesses claiming the creative tax reliefs.
• Reforming the reliefs to expenditure credits is estimated to cost £60 million annually by 2028-29.
• Theatre, orchestra and museums/galleries tax reliefs have supported almost 25,000 productions since introduction.
• The new expenditure credit rates for TV, films, and video games is set at 34%, a 0.5% increase.
• Animation and children’s TV production has an increased rate of up to 39%.
• New guidance from HMRC is needed to explain the qualifying criteria rules for the new schemes.
• Schedule 2 introduces a clarification regarding theatrical productions under theatre tax relief.
• Concerns raised by the Society of London Theatre (SOLT) and UK Theatre about potential impacts on UK creative exports.
• Clause 5 seeks to clarify rules around cultural reliefs and amend time limits for concert series elections.
• A higher rate for orchestra tax relief was issued in October 2021 to help the sector recover from the pandemic.
• Claimants will be required to submit a new online information form starting April 1, 2024.
• The clause and schedule 7 make targeted changes to the REIT rules.
• There are approximately 140 REITs currently established in the UK since its introduction in 2006.
• This is part of a series of reforms initiated under Finance Act 2022 and Finance (No. 2) Act 2023.
• Clause 9 allows qualifying companies that manage ships to elect into the tonnage tax regime.
• Clause 10 increases the capital allowance limit for lessors of ships from £80 million to £200 million.
• The changes aim to attract more shipping companies and enhance UK competitiveness in the international shipping industry.
• Clause 12 deals with aligning tax treatment for compensation recipients in corporate entities and individuals.
• The clause exempts corporation tax on compensation payments from schemes such as the Post Office historical shortfall scheme, group litigation order schemes, suspension remuneration review, and the Post Office process review scheme.
• This ensures fair compensation regardless of how sub-postmasters are structured.
• Clause 13 amends the EMI provisions to extend notification time limits.
• The new deadline is 6 July following the end of the tax year in which the grant was made.
• This change applies to options granted on or after 6 April 2024.
• Tens of thousands of individuals are granted EMI options annually.
• Clause 14 makes changes to abolish the lifetime allowance from tax legislation.
• Removing the charge will benefit around 15,000 individuals, including senior NHS clinicians.
• The Office for Budget Responsibility estimates that the policy will help grow the economy by encouraging skilled workers to remain in or return to the workforce.
• The Chancellor announced the removal of the lifetime allowance charge from April 2023 at spring budget 2023.
• In 2015, public service pensions were reformed and transitional protections were offered to those close to retirement.
• A Court of Appeal ruling determined that offering protections for older members but not younger members was discriminatory on the basis of age.
• The Government introduced legislation in 2022 to remedy this discrimination in the broader public sector.
• MPs' pension schemes, Welsh Senedd Members' pensions, and Northern Ireland Assembly Members' pensions were similarly reformed between 2015 and 2016 but were not covered by the court ruling due to distinct legal underpinnings.
• Clause 16 and schedule 10 aim to extend eligibility for the cash basis method.
• The current take-up of the cash basis is 29% among 4.4 million self-employed businesses.
• The changes are expected to save small businesses about £13 million per year in administrative burdens.
• Clause 17 aims to give HMRC the power to set off taxes already paid by a worker and their intermediary against the PAYE liability of an organisation.
• The changes apply from April 6, 2023, but will also apply to deemed direct payments made on or after April 2017.
• Clause 18 corrects a technical drafting error in the reference to carer’s allowance supplement payments without affecting financial outcomes.
• Clause 19 amends the qualifying criteria for the growth market exemption.
• Initially, three UK markets and one Irish market could access the exemption.
• Since 2014, another 10 markets across the EU/EEA have gained access to the exemption.
• The clause allows multilateral trading facilities operated by smaller investment firms to qualify for the exemption if they meet specific conditions.
• The market capitalisation threshold is increased from £170 million to £450 million.
• Stamp duty and stamp duty reserve tax are charged at a main rate of 0.5%.
• A 1.5% higher rate was applied on the issue or transfer of UK securities into overseas clearance services or depositary receipt systems.
• The incompatible transactions were the issue of securities into depositary receipt systems, clearance services, and certain related transfers known as transfers integral to capital raising.
• HMRC recognised that the 1.5% charge on these transactions was incompatible with the EU capital duties directive.
• The changes took effect on January 1, 2024.
• Smoking rates in the UK are around 13% of adults.
• The Government will increase tobacco duty on all products by 2% above RPI inflation, and hand-rolling tobacco by an additional 10%.
• Additional funding includes £70 million per year for local stop smoking services, £15 million per year for national anti-smoking campaigns, and £45 million over two years for the 'swap to stop' scheme.
• Vehicle excise duty rates will increase by £10 for cars registered since 1 April 2017, up to £20 for vans, and up to £6 for motorcycles from 1 April 2024.
• Clause 26 of the Finance Bill proposes an exemption from vehicle excise duty for foreign vehicles.
• As of November 27, around 193,900 Ukrainians had entered the UK since February 2022 due to the conflict in Ukraine.
• The exemption will apply to individuals under family, sponsor and extension Ukrainian visa schemes driving vehicles with Ukrainian number plates.
• Over 193,000 Ukrainians have been welcomed into the UK.
• Scotland sponsors about 260,000 Ukrainian refugees at the moment.
• Additional funding was announced for the Ukrainian Government and people.