Key Facts

• Clause 1 legislates for the charge of income tax for 2022-23.
• Clauses 2 and 3 set the main default and savings rate for income tax at 20%, 40%, and 45% respectively.
• The starting rate for savings is maintained at £5,000.
• Income tax is expected to raise approximately £230 billion in 2022-23.
• Christopher Chope is proposing an amendment to clause 9.
• The amendment aims to change the liability period for scheme administrators from 6 years to 5 years and 9 months.
• Clause 9 amends the period within which an individual can give notice for their pension scheme administrator to pay annual allowance charges.
• The clause also extends the date by which a pension scheme administrator must report and pay an annual allowance charge to HMRC.
• Amendment 11 proposes changing the six-year notification period to five years and nine months.
• Clause 10 legislates to increase the normal minimum pension age to 57 on April 6, 2028.
• Members of police, firefighters, and armed forces public service pension schemes will retain protected pension ages.
• A substantive request for a transfer before November 4, 2021, allows retention of a protected pension age.
• Clause 11 provides Treasury with power to make regulations addressing tax impacts of rectifying unlawful discrimination.
• The McCloud case found that transitional protection measures amounted to unlawful age discrimination.
• Approximately 3 million individuals are affected by the remedy period covering years between 2015 and 2022.
• Clause 13 requires businesses to include dates of qualifying expenditure on allowance statements.
• Structures and buildings allowances (SBA) allow companies to reduce taxable profits by 3% annually over 33.3 years.
• The clause applies from the date of Royal Assent, not retrospectively.
• Clause 14 introduces a new regime for qualifying asset holding companies effective April 2022.
• Amendments 1 to 6 address technical points to reflect the original policy intention and ensure consistency with wider tax rules.
• The reforms follow extensive consultation as part of the Budget 2020 review of the UK funds regime.
• The topic is Clause 15 of the Finance (No. 2) Bill.
• It concerns Real Estate Investment Trusts.
• The MP proposes that Schedule 3 be adopted as part of the Bill.
• The new clause requires a review of the effectiveness of section 16 provisions.
• The assessment must include an evaluation of existing film tax relief misuse experiences.
• The report should cover total number of enforcement actions, successful enforcement actions, actions against scheme promoters, and future plans for addressing misuse.
• Clause 16 allows films broadcast or streamed online to qualify for film tax relief if they meet high-end television criteria.
• New clause 14 would require a Government review of clause 16 within six months after the Act's implementation.
• HMRC began evaluating tax reliefs in October 2020 as part of good practice policies.
• An independent research agency is contracted to evaluate screen tax reliefs, including film and high-end television tax relief.
• Clause 16 comes into effect for accounting periods ending on or after April 1, 2022.
• Clause 16 is effective for accounting periods ending on or after 1 April 2022.
• Film tax relief was introduced by the Finance Act 2006 and applies only to films intended for theatrical release.
• High-end television tax relief was introduced by the Finance Act 2013.
• The Public Accounts Committee reported in 2014 on the misuse of film tax relief, costing over £2 billion.
• Temporary rate increases for theatre tax relief from 20% to 45% (non-touring) and 50% (touring), reducing to 30% and 35% in April 2023, respectively.
• Orchestra tax relief temporarily doubled from 25% to 50%, reducing to 35% in April 2023, returning to 25% by April 2024.
• Museum and galleries exhibition tax relief extended to April 2024.
• Clause 17 increases theatre tax credit rates from 27 October 2021 to 31 March 2023 at 50% or 45%, then returns to 25% or 20% from April 2024.
• Orchestra tax relief is temporarily increased from 27 October 2021 to 31 March 2023 at 50%, and from April 2023 to March 2024 at 35% before returning to 25%.
• Museums and galleries exhibition tax relief is raised temporarily from 27 October 2021 to 31 March 2023 at 50% or 45%, then from April 2023 to March 2024 at 35% or 30%, before returning to existing levels of 25% and 20%.
• The proposed tax credits aim to support cultural productions.
• The VAT relief introduced by the Government will end in April next year.
• World heritage sites would qualify for the relief if maintained by a charity or local authority.