A number of the measures contained in this year's Bill are targeted at providing support to businesses and individuals significantly impacted by COVID-19. These include the COVID-19 Restrictions Support Scheme which provides for a payment to businesses whose turnover is severely impacted by them. It also includes a temporary reduction in VAT for the hospitality and tourism sector. The extension of debt warehousing measures to income tax will provide relief to self-employed individuals who have experienced a reduction in their income.
There were no Brexit-specific measures introduced in the Finance Bill. However, one Brexit-related change was made in response to the migration of shares and securities in Irish registered companies from UK-based CREST to Belgian-based Euroclear.
The employment and personal tax measures in the Bill are in line with those announced on Budget Day with small changes made to the USC bands, increases made to certain credits such as the Earned Income Credit for the self-employed and the extension of the Help to Buy Scheme. The Bill also sees amendments being made to the filing requirements associated with certain share schemes.
Climate action incentivisation measures involve tweaks to existing regimes by promoting the purchase of energy efficient equipment.
The stamp duty residential rebate scheme in respect of sites used for residential purposes is to be extended and the qualifying conditions slightly eased. The Bill seeks to extend certain stamp duty reliefs for farmers and provides for an increase in the flat rate addition for farmers not registered for VAT.
The Bill contains a number of technical amendments to the Controlled Foreign Company (CFC) provisions, the anti-hybrid provisions and the transfer pricing rules specific to 'Ireland to Ireland' transactions.
Other measures include fully legislating for the changes made on Budget night to the tax treatment of transfers between certain foreign currency bank accounts, the introduction of provisions governing the procedure when a Tax Appeal Commissioner leaves their post prior to the appeal process having concluded and some welcome clarifications relating to DAC 6 reporting requirements.
The Bill extends the Knowledge Development Box and the Regional Film Development Uplift available in respect of certain film investments.
Following its release, the Finance Bill will now go through a number of stages of review and approval before being signed into law in December. Therefore, the proposed amendments outlined in this insight are still subject to change.
We encourage you to contact our tax team to understand what the latest developments or amendments are and what they might mean for your business. They will be happy to assist you with any questions you may have.