Key Facts

• The clause enables changes to require white diesel for private pleasure craft such as yachts and canal barges.
• More than 1,600 replies were received from the Government's consultation in 2019 on implementing the Court judgment.
• New penalties are created for using marked fuel for propelling a private pleasure craft.
• Clause 87 increases the long-haul rates of air passenger duty in line with the retail price index.
• Short-haul APD rates remain frozen for the eighth year, benefiting about 80% of airline passengers.
• The Government will consult on aviation tax reform, considering changes to domestic flight taxation and international distance bands.
• The airline industry contributes £22 billion annually to the British economy.
• It supports approximately 230,000 jobs directly in aviation and up to 500,000 jobs overall through related sectors.
• Ministers were criticized for not providing specific support promised back in March.
• The climate change levy promotes efficient energy use and helps meet emissions reduction targets.
• Electricity and gas main rates will be equalised by 2025 due to electricity becoming a cleaner source than gas.
• The reduced rate for liquefied petroleum gas is frozen at 23% for 2020-21 and 2021-22.
• Over 9,000 facilities in energy-intensive industries across 50 sectors will see their liability increase by retail price index inflation only.
• Landfill tax has led to a 70% decrease in waste sent to landfill since 2000.
• Household recycling increased to 45%, up from 18% over the same period.
• Standard-rated material is currently taxed at £91.35 per tonne, increasing to £94.15 starting April 1, 2020.
• Lower-rate material is currently taxed at £2.90 per tonne, increasing to £3 starting April 1, 2020.
• Budget 2020 announced legislative changes to the carbon emissions tax in Finance Bill 2020.
• The UK will remain in the EU Emissions Trading System until December 31, 2020.
• Schedule 11 amends the Finance Act 2019 to make the carbon emissions tax operational from January 1, 2021 if needed.
• Paragraphs 9 and 10 add provisions for penalties for late payment of tax.
• The schedule allows the Treasury to exclude regulated installations from the charge to tax via regulations.
• Around 1,000 installations currently participating in the EU emissions trading system would be affected by the carbon emissions tax.
• Amendment 14 requires the Government to state conditions for varying import duty rates by September 9, 2020.
• Amendment 15 mandates that draft regulations must be approved by the House of Commons before implementation.
• Amendment 16 requires a detailed report on fiscal and economic effects before exercising powers under section 94.
• Clause 94 gives the Government additional power in setting conditions for varying import duty rates during trade disputes.
• Amendments 14, 15, and 16 seek to amend clause 94 by requiring parliamentary approval and reporting on economic impacts before any action is taken.
• Amendment 14 would force the Government to set out conditions by September 9, 2020.
• Clause 94 amends section 15 of the Taxation (Cross-border Trade) Act 2018.
• The amendment allows variation of import duty without a binding WTO ruling if it is appropriate, having regard to international obligations.
• Section 15 already permits variation of import duty where authorised under international law.
• The EU is seeking similar powers through amendments to its enforcement regulation.
• Amendment 18 seeks to limit preferential creditor status by adding conditions on deductions from payments made in the previous year.
• Amendments 19 and 21 insert language limiting preference to taxes due within 12 months before the relevant date.
• Amendment 20 specifies limitations on deductions for payments made within a year prior to the specified date.
• Amendment 23 excludes debts secured by floating charges advanced before December 1, 2020.
• The amendments limit HMRC's preference only to taxes due in the 12 months before December 1, 2020.
• R3 is concerned that the policy could damage business lending and impede rescue efforts.
• UK Finance suggests the measure could hit small firm lending by over £1 billion.
• The Corporate Insolvency and Governance Bill was expedited through the House of Commons recently.
• The speaker previously ran the British Bankers Association which became UK Finance.
• The tax has already been paid by employers or customers.
• Estimated tax losses due to insolvency in 2018-19 were £4.5 billion.
• HMRC will become a secondary preferential creditor for certain taxes from December 1, 2020.
• The measure is expected to make an additional £220 million available for public services each year.
• The Government has announced a package of support including £330 billion in guaranteed loans to protect against the economic emergency.
• HMRC can issue notices if a company has begun an insolvency procedure or there is a serious risk of it.
• Conditions must be met: individuals were responsible for, facilitated, or knowingly benefited from avoidance or evasion.
• Paragraphs set out conditions for repeated insolvent companies (phoenix companies) with significant outstanding debts.
• Safeguards include rights of appeal against notices and joining company appeals.
• Clause 98 and Schedule 13 are under discussion.
• A new clause requires the Chancellor to review the effects on tax revenues within six months of the Act's passing.
• The review must consider changes in corporation and income tax paid attributable to these provisions.
• The clause aims to protect over £200 million in tax revenue.
• GAAR was introduced in July 2013 and focuses on tackling abusive tax avoidance.
• Taxpayers who refuse to cooperate with HMRC during a 12-month window will be subject to protective GAAR notices, allowing investigations beyond the initial period.
• The speaker mentions umbrella companies targeting NHS workers.
• Proposes a 100% penalty for tax avoidance schemes that fail GAAR or other reasons.
• Recommends joint liability of directors and associated persons for GAAR penalties.
• The government's programme is failing to recognize the impact on organizations.
• 948 companies have not registered a person of significant control, though this number has decreased from previous levels.
• HMRC reported issuing over 75,000 follower notices worth in excess of £7 billion and collected nearly £4 billion.
• The tax gap was estimated at £35 billion for 2017-18.
• BEIS introduced new reporting requirements for Scottish limited partnerships in June 2017.
• The Finance Bill clauses discussed include ETC tax, SMB group issues, and the Loan Charge Action Group.
• Additional focus is given to supplementary evidence from the Small to Medium Business Group (SMB).
• New Clause 1 and New Schedule 1 are introduced by the Chartered Institute of Taxation.