The Finance Bill Committee has been in full swing over the past few weeks. Now that parliament is in recess, it seems like a good time to look at what references the OTS has received in the midst of the debate so far.
On Partnerships, clause 68 and schedule 13 introduce changes to prevent tax avoidance through the use of certain partnership structures. The OTS review of the whole area of partnership taxation was noted twice, including the interim report published in January 2014. Partly, this was to bring to light the risk of “unnecessary complication while the results of the OTS review are still being considered”.
On share schemes, clause 49 and schedule 7 implement a number of recommendations made by the OTS to simplify the tax rules in relation to employment-related securities (ERS) such as employee shares or ERS options awarded to employees. The changes affect the tax treatment of internationally mobile employees and nil-paid and partly-paid ERS, and extend the corporation tax relief available to companies in relation to employee share acquisitions. It was noted that “This is just one of the provisions in the Bill that implements recommendations made by the OTS. It addresses issues indentified as priorities by the OTS and has been welcomed by consultation respondents as a valuable simplification of complex tax rules.”