There does not appear to be any restrictions on EU law claims in today’s budget announcements. However the last two previous restrictions on EU claims were not announced with the budget but were only introduced very late at the final reporting stages of those bills, namely Part 8C CTA 2010 (the 45% super tax on interest payments by HMRC introduced in FA (2) 2015) and section 234 Finance Act 2013 (prohibition on interim payments against HMRC). There is one announcement that potentially infringes EU rights. A new 25% charge on pension transfers to qualifying recognised overseas pensions schemes has been introduced. This seems to involve a prima facie restriction on the EU right to free movement of capital. Although this does not apply where both the individual and the pension are located within the EEA, the right to free movement of capital applies outside the EEA as well. No similar charge would apply to transfers between UK registered pension funds.
Other announcements today include
Looking forward there will be:
The anticipated changes to partnership taxation – consulted on last year and where draft legislation was promised before this year – have not been announced today. Instead the government has said, again, that it will publish a response document (to last year’s consultation) and draft legislation.
This article appears in the JHA March 2017 Tax Newsletter, which also features: