HMRC has issued Spotlight 31: change of date for withdrawal of transitional relief on investment growth. This extends the date for withdrawal of disguised remuneration transitional relief to 31 March 2017.
Transitional relief was introduced by Para 59, Schedule 2 of Finance Act 2011 alongside the disguised remuneration rules to allow those who have settled with HMRC to obtain relief on any future investment growth.
At Budget 2016 the Government announced a package of changes to tackle perceived abuse of the disguised remuneration rules, including the withdrawal of transitional relief from 30 November 2016.
However, the Government wants to ensure that all end users of disguised remuneration schemes have the opportunity to settle with HMRC before transitional relief is withdrawn. Amendments have therefore been tabled to Finance Bill 2016 to extend the date for withdrawal to 31 March 2017.
These amendments, once agreed by Parliament, will mean that those wanting to benefit from transitional relief must have settled with HMRC by 31 March 2017.
Links
Disguised remuneration rules (freeview)
Disguised remuneration: changes from 2016 onwards
Finance Bill 2016: tax update and rolling planner (to keep track of Finance Bill developments)
